48 Hours of Copper Prices

48 Hours of Copper Prices

While we usually take a deep dive into what the price of copper did for the week in this space, a 48-hour period in the middle of the week really gives a crystal clear picture of the volatility of the price.

Quickly taking you back to the beginning of this week, the price jumped from Friday’s low of $4.05 a pound to a high of $4.30 on Monday, October 4 before settling for the day just below $4.24.

The price hovered in that area for most of Tuesday, October 5 before landing for the day at $4.19 a pound.

And then the 24 hours began.

It started on Wednesday, October 6 with a report of “worries” about a slump in economic growth in Europe. German factory orders were down nearly 8% in August, and with an energy shortage looming, investors started thinking any kind of economic recovery would be smaller and slower than expectations.

As a result, the price of copper dropped 1.4%, at one point touching $4.11 a pound, before settling at $4.14 a pound at the end of the day.

Hours later, on October 7, a completely different report emerged. This time, a supply chain concern over copper mined in Chile brought an immediate spike in the price. A work stoppage at Chile’s largest mine, which as of right now does not appear to have a quick resolution, pushed the price of copper back up to nearly $4.26 a pound before settling just below $4.25.

What happens next?

While the short term remains difficult to predict, most analysts still expect the price of copper to remain above $4 a pound for the rest of 2021. While copper was selling near $3 a pound last October, the price has not been below $4 a pound since last February.

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