Copper is widely used today. It is a kind of nonferrous mineral that is close to silver and gold. The use of copper is not really new. Our ancestors have used it to serve many purposes. There are archaeological evidences that show that copper had been used as utensils, weapons, and even in jewelries. This metal is highly conductive. That is why almost all electronic gadgets use copper in its man-made form-copper wires. This is also the same reason why people should care more about the copper price.
24 hour Copper $US Dollar price per pound
Causes of copper price change: Undetermined
Like the price of all materials used to produce new products, copper price is not permanent. The conditions in the copper market dictate copper price. Because there are many reasons that underlie the change in copper price on the stock market, analysts can't seem to find the ultimate conclusion to such changes in the copper price.
Copper price change: Some speculations
First, there is the inevitable law of supply and demand. This law also contributes to the change in copper price. How? Copper seems to be always in demand nowadays. The growing market for it affects the copper price. Any big change in the supply and demand for copper can lead to a dramatic change in copper price.
Second, the production of copper affects copper price. As we all know, copper is obtained through mining. There is no assurance that mining conditions would always be smooth. Miners can launch strikes that could last for days. This might hinder an on-going mining operation and cause a rise in copper price.
Third, disasters and oil prices are also factors affecting the copper price. Bad weather conditions and disasters can slow down copper mining operations. Oil prices, on the other hand, have a direct effect to the copper price. This is because oil is used by transportation vehicles used to move copper from one place to another. High oil prices require extra capital; extra capital entails a higher copper price.
Fourth, copper theft is a factor in the rise of copper price. Metal thieves keep an eye on copper. This metal could be valuable to them because scrap yards buy these metals for a high price. Metal thieves burn copper wires in order to eliminate the cover which contains the name of the company that owns those copper wires. Copper theft affects the copper price because it contributes to the growth in the supply and demand for copper.
Sat, 25 Oct 2014 01:09:00 GMT
This past week's calm optimism was likely an interlude for a bigger shift in market conditions. With a FOMC decision, US GDP, ECB Stress test and much more ahead; stability will be put to the test.
Sat, 25 Oct 2014 00:59:00 GMT
The US Dollar managed to muscle out a modest advance this past week despite favorable winds for investor sentiment (through benchmarks like S&P 500 and volatility indexes) as well as a persistent dovishness in rate forecasts.
Sat, 25 Oct 2014 00:31:00 GMT
Gold prices are softer this week with the precious metal off by 0.55% to trade at $1231 ahead of the New York close on Friday.
Sat, 25 Oct 2014 00:21:00 GMT
The Aussie may remain under pressure over the coming week as elevated volatility caps carry demand, while US-centric event risk offers potential breakout catalysts.
Sat, 25 Oct 2014 00:15:00 GMT
The New Zealand Dollar may fall if the RBNZ withdraws its promise of future rate hikes while a status-quo FOMC statement sees Fed tightening bets rebuild.