Prev Arrow Commodities

Copper ($COPPER) Commodity Forecast: Down 5.0% Today

Morpher AI identified a bearish signal. The commodity price may continue to fall based on the momentum of the negative news.

What is Copper?

Copper is a widely used industrial metal, known for its conductivity and versatility. It is heavily influenced by global economic conditions and demand, particularly from China, the largest consumer of copper.

Why is Copper going down?

COPPER commodity is down 5.0% on Sep 30, 2024 13:20

  • Copper experienced a bearish movement today despite recent bullish trends.
  • The bearish movement could be attributed to profit-taking by investors after a series of strong gains driven by China's stimulus measures.
  • The market may have reacted to concerns about the sustainability of the recent price surge, leading to a temporary pullback.
  • Traders might be cautious amid uncertainties surrounding the global economic outlook and potential shifts in central bank policies.

COPPER Price Chart

COPPER News

Copper Set for Solid Monthly Gain

Copper futures traded around $4.6 per pound on Monday and were on track to advance nearly 11% in September, underpinned by China’s stimulus measures that lifted the economic and demand outlook in the world’s largest copper consumer. In the latest developments, the People’s Bank of China announced that it would allow home buyers to refinance mortgages. The central bank also slashed banks’ reserve requirement ratio by 50 basis points last week, which is expected to free up 1 trillion yuan in capital, and lowered key medium- and short-term rates to encourage borrowing and boost liquidity. Those developments came after the US Federal Reserve delivered an outsized 50 bps rate cut earlier this month amid efforts to engineer a soft landing, giving other major central banks room to ease policy.

Copper Set for Strong Weekly Gain

Copper futures traded around $4.6 per pound on Friday and were set to gain about 7% this week as China implemented various stimulus measures to support economic growth, boosting the demand outlook in the world’s largest copper consumer. The People’s Bank of China slashed banks’ reserve requirement ratio by 50 basis points, the second such reduction this year which is expected to free up 1 trillion yuan in capital. The central bank also lowered its one-year medium-term lending facility rate and key short-term rates to encourage borrowing and boost liquidity. Those developments came after the US Federal Reserve delivered an outsized 50 bps rate cut earlier this month amid efforts to engineer a soft landing, giving other major central banks room to ease policy.

Copper Firms Up on More China Stimulus

Copper futures firmed up near $4.45 per pound on Thursday, hovering close to over two-month highs on reports that top consumer China will be rolling out more stimulus measures to support the economy. Beijing was reportedly considering injecting up to 1 trillion yuan of capital into the largest state banks to boost economic activity. Earlier this week, China unveiled a slate of economic support measures, including plans to cut the reserve requirement ratio by 50 basis points before the year ends and reduce key lending rates such as the seven-day repo rate, medium-term lending facility and loan prime rates. Those moves also came after the US Federal Reserve kicked off its easing campaign with an outsized 50 basis point rate cut earlier this month, boosting the global economic outlook.

Copper Gains on China Stimulus Plans

Copper futures rallied $4.35 per pound on Tuesday, hitting the highest levels in over two months after top consumer China unveiled a slate of easing measures to support the economy. People’s Bank of China Governor Pan Gongsheng said in a rare briefing that the PBOC will cut the reserve requirement ratio by 50 basis points before the year ends, without giving a specific timeline. He also announced plans to reduce key lending rates including the seven-day repo rate, medium-term lending facility and loan prime rates. Those developments came after the US Federal Reserve kicked off its easing campaign with an outsized 50 basis point rate cut earlier this month, boosting the global economic outlook.

Pendle ($PENDLE) Crypto Forecast: Up 6.8% Today

Worldcoin ($WLD) Crypto Forecast: Up 13.1% Today

Aave ($AAVE) Crypto Forecast: Up 5.8% Today

Ethena ($ENA) Crypto Forecast: Up 17.0% Today

Sei ($SEI) Crypto Forecast: Up 5.1% Today

BOOK OF MEME ($BOME) Crypto Forecast: Up 27.1% Today

Floki ($FLOKI) Crypto Forecast: Up 5.3% Today

Solana ($SOL) Crypto Forecast: Up 5.0% Today

Gala ($GALA) Crypto Forecast: Up 5.4% Today

Aptos ($APT) Crypto Forecast: Up 6.1% Today

Copper Price History

30.08.2024 - COPPER Commodity was down 5.0%

  • Copper experienced a bearish movement today despite recent bullish trends.
  • The bearish movement could be attributed to profit-taking by investors after a series of strong gains driven by China's stimulus measures.
  • The market may have reacted to concerns about the sustainability of the recent price surge, leading to a temporary pullback.
  • Traders might be cautious amid uncertainties surrounding the global economic outlook and potential shifts in central bank policies.

22.04.2024 - COPPER Commodity was down 5.9%

  • The bearish movement in copper today can be attributed to the easing from its record high of $5.15 per pound.
  • Poor demand in the near term, particularly from China, the world's top copper consumer, despite tight ore supply and low treatment volumes in the refining industry, led to an increase in inventories and a sharp discount in prices.
  • Speculative bets for copper remained high, driven by its role in electrification and infrastructure, but concerns about looming shortages and the surplus expected in the market for 2024 and 2025 weighed on prices.
  • The high costs of committing to new projects and the focus on M&A activity by giant miners instead of new developments also contributed to the bearish movement in copper prices today.

15.04.2024 - COPPER Commodity was up 5.0%

  • Copper reached an all-time high of $5.03 USD/Lbs, marking a substantial increase in price.
  • The surge in Copper prices can be attributed to strong demand and tight supply dynamics, with concerns of shortages looming in the market.
  • Increased imports of copper ore by China despite soaring prices underpin the robust demand from manufacturers, further fueling the bullish trend in Copper prices.
  • The high costs associated with developing new copper mines have led major mining companies to focus on M&A activities, signaling a shift in the industry's strategic direction towards consolidation rather than new projects.

14.04.2024 - COPPER Commodity was up 5.2%

  • Copper futures soared to over $4.8 per pound, the highest since February 2022, driven by strong demand and tight supply concerns.
  • Increased imports of copper ore by China despite rising prices supported manufacturers' demand, while smelters in China faced margin pressures due to low material availability.
  • Giant miners turned to M&A activities instead of new projects due to high costs, exemplified by BHP's recent attempt to acquire Anglo American.
  • The bullish movement in copper was further fueled by the metal's essential role in electrification, AI, and automation infrastructure, underpinning long-term demand forecasts.

22.04.2024 - COPPER Commodity was down 5.0%

  • Today's bearish movement in copper is due to concerns over low near-term demand in China, the largest consumer of copper globally, despite tight ore supply and low treatment volumes in the refining industry.
  • Speculative bets for copper, fueled by its importance in electrification and infrastructure projects, have maintained high prices year-to-date, but a lack of immediate physical demand is putting pressure on prices.
  • The high costs associated with initiating new mining projects have prompted major miners to prioritize M&A activities over new developments, affecting the future supply forecast for copper.
  • The market's current shift may also indicate a correction from recent record highs, as investors reconsider the balance between speculative demand and actual consumption in the copper market.

15.04.2024 - COPPER Commodity was up 5.1%

  • Copper prices surged to over a 2-year high due to strong demand and tight supply concerns, with futures exceeding $4.71 per pound.
  • Increased copper ore imports from China, despite rising prices, highlight robust demand from manufacturers. Low availability of material is impeding margins for smelters in China, potentially leading to a 10% output cut this year.
  • The market responded positively to the optimistic long-term demand outlook for copper, fueled by its crucial role in global electrification, artificial intelligence, and automation infrastructure.
  • Speculation about quantitative easing in China, fueled by concerns about the country's property crisis, further boosted copper prices. Markets are anticipating rate cuts and potential supply deficits against optimistic demand projections.

08.02.2024 - COPPER Commodity was down 0.8%

  • Copper futures dipped to $3.84 per pound due to the lack of significant stimulus from China, disappointing investors who were hoping for more extensive measures to boost demand and stabilize growth.
  • The announcement of a 5% growth target for 2024 by China at a recent parliament meeting raised concerns about the country's economic outlook, especially as the manufacturing sector witnessed its fifth consecutive month of contraction in February.
  • The increase in copper inventories in SHFE warehouses to 214,487 tons, the highest level in nearly a year, further signaled weak demand for the metal, contributing to the bearish movement in the market.
  • Investors are now looking towards the upcoming National People's Congress (NPC) meeting from March 5-11, considering the possibility of additional stimulus measures that could potentially impact copper prices in the near future.

05.06.2024 - COPPER Commodity was down 2.2%

  • Copper reached a 4-week peak earlier this week supported by optimism around potential US Federal Reserve rate cuts and fiscal stimuli in China, but it reversed its course to follow a bearish trajectory today.
  • The decline is likely linked to uncertain factors on the demand side, including contradictory information on Chinese manufacturing activities and forecasts of weakening demand in China for the latter part of the year.
  • Moreover, the consistent growth in copper supplies in warehouses monitored by LME and the Shanghai Futures Exchange may have contributed to price declines, hinting at potential concerns of oversupply in the market.
  • Despite recent positive movements, today's downturn underscores the persistent obstacles and unknowns in the global economic growth and trade disputes landscape, influencing the demand and supply dynamics in the copper market.
i
Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.