Overview

Click to expand overview
Copper fell below $10,000 a metric ton as traders weighed a sharp rise in global inventories and soft US job openings data that reinforced bets that the Federal Reserve On the weekly chart, we see that the price of copper has dropped sharply in the past few weeks. It has dropped from $5.16 in May to $4.2. It has dropped below the key The price of copper for delivery in July extended losses on Wednesday as it traded down 0.20% to $3.76 (£3.02) per pound as risks of a slowing global economy, including Copper prices. Copper prices will average $8,300/mt in the second quarter of 2025 according to J.P. Morgan Research. This is based on a reduced demand forecast As of 3:26 PM local time, copper prices on the London Metal Exchange fell by 1.7% to $9,968.50 per ton. Shares of copper miners also experienced declines, with Freeport Copper Close to Testing $10,000 as BHP Bid Points to Supply Risk. Copper made a fresh push toward five digits as BHP Group Ltd.’s blockbuster offer to buy Anglo Q2: From April to June, copper prices rose further to between $9,500 and $9,800, driven by a rebound in manufacturing and green energy demand. Q3: In August

Copper Prices Fall Below $10,000: Is Now the Time to Buy?

Copper prices have recently dipped below the significant $10,000 per metric ton threshold, prompting investors to consider potential buying opportunities. As of 3:26 PM local time, copper prices on the London Metal Exchange fell by 1.7% to $9,968.50 per ton. This decline comes as traders weigh several factors impacting the global copper market. This begs the question: Is this a temporary dip or a longer-term trend, and should you consider investing in copper now?

Why Copper Prices are Falling

Several factors are contributing to the recent decline in copper prices:

  • Rising Global Inventories: Copper fell below $10,000 a metric ton as traders weighed a sharp rise in global inventories. Increased supply can put downward pressure on prices.
  • Soft US Job Openings Data: Soft US job openings data reinforced bets that the Federal Reserve may slow down or even pause interest rate hikes. Concerns about a slowing global economy, including those indicated by US job data, can reduce demand for industrial metals like copper.
  • Global Economic Slowdown Fears: The price of copper for delivery in July extended losses on Wednesday as it traded down 0.20% to $3.76 (£3.02) per pound as risks of a slowing global economy increased, further impacting demand forecasts.

Copper Price Trends and Predictions

Looking at recent trends, on the weekly chart, we see that the price of copper has dropped sharply in the past few weeks. It has dropped from $5.16 in May to $4.2 (presumably per pound). The price has dropped below the key resistance level. Examining quarterly performance, Q2 saw copper prices rise further to between $9,500 and $9,800, driven by a rebound in manufacturing and green energy demand. However, trends observed in Q3, particularly in August, may signal a shift. It's crucial to stay informed about these fluctuations.

While short-term pressures exist, long-term forecasts remain optimistic. J.P. Morgan Research projects copper prices will average $8,300/mt in the second quarter of 2025. This is based on a reduced demand forecast, suggesting that while growth might be tempered, demand remains substantial.

Should You Buy Copper Now?

Whether or not to buy copper now depends on your individual investment strategy and risk tolerance. The current dip presents a potential opportunity to buy at a lower price. Copper Close to Testing $10,000 as BHP Bid Points to Supply Risk. Shares of copper miners also experienced declines, with Freeport, but factors like potential supply risks, exemplified by BHP Group Ltd.’s blockbuster offer to buy Anglo, need to be carefully considered.

Factors to Consider:

  • Long-Term Outlook: Believe in the long-term demand for copper driven by green energy transitions and infrastructure development?
  • Risk Tolerance: Can you withstand potential further price declines in the short term?
  • Diversification: Is copper a suitable addition to your diversified portfolio?

Do your research, consult with a financial advisor, and make informed decisions based on your individual circumstances before investing in copper.

Top Sources

Related Articles