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Copper has been a valuable commodity for thousands of years, and its uses have only increased as more industries appear. That said, most economic forecasters predict slightly slower global growth in 2024, which could weigh on demand growth. As always, there are puts and takes when looking at commodities.

1. First, it’s making good progress on its low-cost leaching initiative, having hit its target of an annual run rate of 200 million pounds of copper in the fourth quarter.
2. Copper trades on the London Metal Exchange and COMEX, which is now a division under the Chicago Mercantile Exchange.
3. So far this year, the base metal’s price is little changed, with a metric ton of copper costing around $8,600, according to prices on the London Metal Exchange.
4. Sometimes referred to as Doctor Copper, the base metal is seen as a reliable leading indicator.

If nothing else, copper prices are not expected to take a dramatic downward turn, which is good news for investors. This year has seen copper prices dipping into a trading range, which has yet to resolve to the upside. According to Comex and a number of industry leaders, copper will need to break above 2018’s high, when copper rose to well over $3, to establish a major bull trend. Copper prices have been in a bearish trend recently, and they’re not necessarily expected to rise anytime soon.

Conservatively valuing Freeport-McMoRan

No matter where someone is in the world, whether in New York, China, or London, silver tends to hold its value across markets. Copper is a brownish-orange metal used in countless applications. Commonly found in the electrical industry for its conductive properties, copper is also used in ship lining and jewelry. Construction industries use copper for roofing, doors, and handrails, and its antimicrobial and biostatic properties make it perfect for frequently-touched surfaces.

This was down significantly from $6,340 at the start of the year. The steep drop was attributed to macroeconomic factors and concerns stemming from the coronavirus pandemic. By May 2020, the price of copper had recovered to more than $5,200 per metric ton. The price of copper is largely influenced by the health of the global economy.

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In fact, most forecasts for copper prices over the next few years continue to be bearish at worst and neutral at best. Second, management outlined it had a “brownfield growth pipeline” of 1.7 billion pounds of copper within eight years, with 400 million pounds able to be added within two to three years. Consequently, Freeport has the potential to invest in projects and take advantage https://traderoom.info/ of higher prices or better conditions. Overall, copper gained only 2% last year, following a 14% decline in 2022. So far this year, the base metal’s price is little changed, with a metric ton of copper costing around $8,600, according to prices on the London Metal Exchange. Check the price of copper with Money Metals Exchange’s interactive live and historical chart.

Those bullish bets follow a supply setback that’s just a few months old, with key mines running into trouble at the end of last year. The upshot is that what had looked like a clear case of excess supply has now morphed into a likely deficit, according to Todd Warren, a portfolio manager at Tribeca. Find your state laws and get information you need to avoid problems when scrapping your materials.

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Matthew Langsford, who runs a A$180 million ($120 million) natural resources fund at Sydney-based Terra Capital, said he now sees “at least 50% upside” in prices by the end of 2024. During periods of high prices—such as in 2021, when COMEX prices peaked at more than $4.70 per pound—users often turn to aluminium and other substitutes. Aluminium can replace copper in car radiators, cooling and refrigeration tubes, electrical equipment and power cables. Optical fiber replaces copper in telecommunications equipment, while plastic replaces copper in pipes and plumbing.

In homes and buildings, copper has decorative as well as practical uses in pipes and wiring. Although copper has often been used in circulating coinage, it is not considered to be a precious metal like Gold and Silver. Copper is also a native metal, which means it can be used in its natural form. Even copper scrap has value, as copper is one of the few metals whose value and function do not dwindle after recycling.

In recent years, new technology has caused demand for copper to go up. The automotive industry forms one of the most substantial copper demands in the world, in part due to modern electric vehicles that use copper wiring. Smartphones and electric household appliances and their respective production also require copper parts. Copper’s malleability makes it easy to work with, and it is readily available worldwide despite the growing potential of a copper shortage.

Copper moves around the world in a variety of forms such as copper ore, raw copper, refined copper and copper wire. Chile and Peru are the largest exporters of copper ore, while China and Japan are its largest buyers. Zambia is the largest exporter of raw copper, while China is its largest buyer.

These scrap prices are for reference only based on market trends and resources. Copper is a unique commodity that has a distinctive value in the global market due to its industrial worth. Today, it is the world’s third-most-used metal, after iron and aluminium, and plays a pivotal role in all major economies and the developing world. Its traderoom utility coupled with a low price makes copper a low-risk investment favoured by international investors. Trading copper offers substantial asset-class diversification, which can be an effective way to lower the overall volatility of a portfolio. While copper prices may seem grim now, this isn’t a permanent indicator of the metal’s value.

Management forecasts it will produce 200 million pounds of copper from leaching in 2024 and get to a run rate of 400 million pounds “within a couple of years,” according to Quirk. It has the potential to hit 800 million pounds per annum over time. For reference, Freeport expects to sell 4.1 billion pounds of copper in 2024, so the leaching initiative is significant. That’s an excellent valuation if you like the long-term outlook for the price of copper, driven by demand from the economy’s electrification trend.