What Factors Determine Copper Prices?

Factors affecting copper prices include supply, demand, pressure on commodity markets, and current stockpiles already in place. Given these variables, and the fact that many operate independently of the others, the volatility copper often experiences is something many expect to continue for the long term.

One of the biggest factors affecting the price of copper is the demand. Copper is a material used in a great deal of applications, including new construction and remodeling. If economies are growing, then the demand for new construction, and more copper, also grows along with it. Growth in Asian economies in particular, which account for 50 percent of all copper use, is another important factor.