Copper is a popular commodity with a significant role in many goods, including construction. Analysts monitor it carefully to notice changes in its value. When its price increases, it suggests a boost in economic activity. Copper and other commodities are available to trade on Plus500.
Back in December, the price for copper for delivery in three months reached $8028 a ton on the London Metal Exchange. The price on the Shanghai Futures Exchange was $9095 a ton. This is the highest it’s been in nine years.
Copper Economies Bouncing Back
It is an impressive turnaround in the price of copper. Copper’s price stopped below $5000 when the coronavirus pandemic spread through Europe. The recovery of copper prices might lead to exciting market changes.
The COVID-19 pandemic influenced copper production and Chile and Peru. These two large copper producers experienced some fluctuations in their demand. There were many problems with inflating the price. This commodity contributes to the current weakness of the US dollar. Copper prices are always in US dollars. This means that any fall in the strength of the US currency influences the cost of copper.
Over the long term, the copper demand for electric cars could have a say in its value. No matter the link between copper value and economic health, it’s clear that its value is increasing.
Copper is more than a popular commodity. It has a say in market shares, currency value, and the global economy. Moreover, its close link to the US currency might predict how it will behave through the end of the year. One thing is certain: copper costs aren’t dropping soon.