Copper prices today: Copper is up 7.52% year to date

What is the price of copper today?

Copper traded today at $4.19 per pound on August 19, 2024. That’s up 5.00% from the prior week and up 7.52% since the beginning of the year.

Copper prices

The spot price reflects what traders buy and sell copper for immediately, or on the spot.

Copper spot prices are typically quoted in pounds or kilograms in U.S. dollars. But there are other ways to quote copper spot prices.

Copper prices may be quoted in metric tons for large-scale industrial transactions, as global markets tend to trade in larger quantities.

Some financial markets quote prices in currencies besides U.S. dollars.

Copper reached a 52-week high of $5.18 on May 20, 2024, and a 52-week low of $3.52 on Oct. 23, 2023.

Spot metal prices

Copper is technically classified as a base metal due to its widespread industrial usage and greater abundance than precious metals. But it is often quoted alongside true precious metals like gold, silver, platinum and palladium.

Although copper is not a precious metal in the traditional sense, its importance in electrical wiring, construction, and new technologies, such as electric vehicles, lends it a status often akin to that of precious metals.

The spot price of copper fluctuates in real time based on factors such as mining production, global demand, scrap availability, currency exchange rates and inventory levels.

What affects copper prices?

Like many commodities, copper prices are significantly influenced by factors that affect supply and demand in the short and long term.

China is one of the largest consumers of copper, and its economic activities heavily influence global copper prices. The country’s rapid industrialization and urbanization have increased the demand for copper, used extensively in construction and manufacturing. Consequently, any fluctuations in China’s economic growth or industrial policies can substantially impact global copper demand.

Copper is also traded primarily in U.S. dollars, which plays a crucial role in its price. Currency fluctuations can affect copper prices. When the dollar strengthens, copper becomes more expensive in other currencies, potentially reducing demand.

Miner productivity and government reserves can also influence copper prices. Disruptions in copper mining, whether due to strikes, accidents, or environmental factors, can lead to supply constraints and higher prices. Similarly, decisions by major copper-producing countries to release or withhold copper from their national reserves can affect global prices.

Copper price history

Copper’s price history has included notable peaks and valleys, many of which correspond to economic and geopolitical events.

For example, the rapid growth of the Chinese economy in the early 2000s drove copper prices higher. When it cooled in the mid-2010s, copper prices decreased.

COVID-19 prompted another price drop. The global pandemic led to shutdowns that slowed economic growth, lowering demand for copper. But that led to a major rebound in 2020 that carried into 2021.

In the years since, green technology has led the charge. Increased demand for renewable energy and electric cars has boosted copper prices.

What are copper futures?

Like many commodities, copper trading frequently utilizes futures contracts. These are different from spot prices. They secure the right to buy or sell copper at a fixed price on a future date.

CME Group offers copper futures. You might use them to speculate on or hedge against future price movements. The standard contract size is 25,000 pounds, making them a significant tool for large-scale traders and industrial users.

Copper’s product code on the electronic trading platform CME Globex is HG. You can use it to identify and trade copper futures contracts.

The CME Group Volatility Index offers insights into the 30-day implied volatility of the copper market. It reflects expectations of price fluctuations in the market based on trading options for copper futures.