After weeks of reporting copper price increases, the price dropped during the week of August 13-20.
Significantly.
Due to China announcing a lower demand for copper, and concerns about a struggling economy due to COVID outbreaks, copper dropped from last Friday’s price of $4.38 a pound to a level we haven’t seen since February. And it briefly dropped below $4 a pound on Thursday, August 19.
The week started on a somewhat uneventful note, with prices remaining dropping slightly despite ongoing labor problems at the world’s two largest copper mines in South America. Workers reportedly blocked access to one mine because of a strike, while strikes began at two other mines in Chile. And if that wasn’t enough, the Highland Valley copper mine in Canada was forced to close due to a wildfire threat. By Tuesday, August 17, the price of copper had closed at $4.20 a pound.
The bottom started to drop on Wednesday, as China announced it would be slowing the growth strategy is announced in March due to more COVID outbreaks. Add to that the Fed Board announcing a potential slowdown in bond buying, and copper’s price started to see a significant drop. At one point on Thursday, August 19, the price hit $3.96, a six-month low.
The six-month chart shows we are at the February 19 level right now, but also significantly lower than the record high price we hit last May, when prices climbed above $480 a pound.
When looking at the one-year price chart, we are still paying about $1 more per pound than last August.
Analysts are predicting demand will return later this year, so prices will remain high for at least the rest of 202o.
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