(VIANEWS) – Copper (HG) has been up by 8.05% for the last 21 sessions. At 22:50 EST on Wednesday, 23 November, Copper (HG) is $3.65.
Why is Copper Future Going Up?
Traditionally, copper is thought of as a cyclical commodity, but with global growth and demand expected to continue, copper prices may rise in the coming years. Copper has long been seen as a bellwether for the global economy.
Copper is used in everything from computer chips to toasters. As the world transitions to renewable energy, copper’s role in the clean energy transition should help support strong long-term demand. However, the path ahead is not clear.
China is the world’s largest metals consumer, and a growing economy and reflationary environment will boost copper demand. However, the Chinese property sector is shrinking, which could result in less demand.
New mining projects are slow to get approved, and grade declines are delaying projects. This could keep the supply/demand imbalance in place for years. Political and environmental concerns may continue to exacerbate the issue.
The Office of the Chief Economist projects that copper prices will average US$9,100 per metric ton by 2023. However, Bank of America is more conservative in its copper market forecast, predicting copper prices will reach US$3.97 per pound in 2022 and US$3.29 in 2023.
The Bank of America also estimates that the copper market will have a deficit in 2024, but will see a surplus in 2023. This will support copper prices in the long term. However, copper prices are expected to fall in the second half of the year, according to UBS analysts.
Copper prices could see even more price volatility in the coming months, according to Bank of America strategists. Their “High Ambition Scenario” assumes that mines ramp up their recycling practices to meet growing demand.
Today’s last reported volume for Copper is 2667, 99.99% below its average volume of 16189475828.98.
Copper’s last week, last month’s, and last quarter’s current intraday variation average was a negative 1.52%, a negative 0.94%, and a positive 1.76%, respectively.
Copper’s highest amplitude of average volatility was 1.60% (last week), 2.26% (last month), and 1.76% (last quarter), respectively.
Commodity Price Classification
According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, Copper’s commodity is considered to be oversold (<=20).
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