Analysis of Copper Price Trend on December 10, 2021
The price of copper is believed to provide a reliable measure of economic health, as changes to copper prices can suggest global growth or an upcoming recession. With high volatility and strong liquidity, copper is attractive to traders. The copper spot price is affected by extraction and transportation costs, as well as supply and demand. Use the copper price chart to follow live prices and stay up to date with the latest news and analysis to trade copper prices consistently.
1. Copper Price
Copper futures traded around $4.3 per pound on December 7, close to their lowest level in eight weeks. The world’s largest copper producer projected prices to fall in 2022 amid weak demand from top consumer China, particularly from the property sector. CEO of Chile's Codelco Octavio Araneda forecast a price decline of up to 9% next year, saying copper supply will outpace demand until 2024. He added that only in 2024 higher demand for electric vehicles will match up with the copper output. Codelco expects copper prices to fall in a year to between $3.80 and $3.90 per pound, below projections by Chilean copper regulator Cochilco of $3.95 per pound. Meanwhile, investors continued to monitor developments related to the new COVID-19 strain and the possible impact on the global economic recovery and the tightening plans of some central banks.
2. Future of Copper
Copper is an essential industrial metal used worldwide. Copper prices are followed in financial markets around the globe and the metal is growing in popularity. Copper is widely used in construction and because of its electrical properties is found in wires and circuit boards. Copper is mined in open mines around the world, with Chile and the United States leading in overall copper production. The demand for copper is increasing as countries such as China and India continue to develop, while the supply remains tight. The growing demand and constrained supply are likely to keep copper prices volatile in the near future.