This ductile metal is famed for its thermal and electrical conductivity and graces all kinds of products in homes and commercial applications. Over thousands of years, copper and its alloys have been present in civilization and contributed to the history of humankind. In fact, when alloyed with tin to become bronze, copper gave rise to a new era in development. Contracts on copper and copper futures are traded around the world, but the following specifications refer to the CME Group copper futures contract.
25,000 pounds
US cents per pound; minimum tick size is in multiples of five one-hundredths of one cent (0.05¢ or $0.0005) per pound, equivalent to $12.50 per contract. A fluctuation of one cent (1¢ or $0.01) is equivalent to $250 per contract.
Open outcry trading is conducted from 8:10 AM until 1:00 PM ET.
Electronic trading is conducted via the CME Globex® trading platform from 6:00 PM Sundays through 5:15 PM Fridays, Eastern Time, with a 45-minute break each day between 5:15 PM and 6:00 PM.
As of date of initial publishing, there were no daily limits; however, it is wise to consult the exchange.
Native copper has likely been smelted for several thousand years and appears to have occurred independently in several parts of the world. Bronze and brass from copper alloys are nearly as old with examples found in ancient Sumerian and Egyptian cities. Fresh pink or peachy copper oxidizes on the surface and appears greenish meaning, like gold, copper has a unique natural coloring which sets it apart from the other silvery or grey metals.
Copper smelters may now be found across the globe per the following map:
Easily worked into shapes or pulled into wire, copper has excellent corrosion resistance as evidenced in ancient pipes and artifacts. Copper is second only to silver in terms of its electrical conductivity but because of its relative availability in most areas of the world, the historically lower price of copper has made it the main choice for electrical applications. Copper also enjoys the benefit of being antimicrobial - making copper alloys a top choice for doorknobs that mostly disinfect themselves within eight hours. Ancient people often used copper to disinfect wounds and Hippocrates used it to treat leg ulcers. Copper is also important for plants and animals and occurs in human bone, liver, and muscle.
Open pit mines are the main source of primary copper and once the ore has been extracted, smelting and refining can begin.
***Image courtesy of ICSG
***Image courtesy of ICSG
Copper can also be recycled and this secondary copper is virtually indistinguishable from primary copper.
***Image courtesy of ICSG
Smelting - the use of heat and/or chemicals to extract metal from ore
Alloy -a solution of two or more elements/metals into another metal
Important fundamental factors for copper price include economic conditions as well as supply conditions. Like other metals, any political or social issues in the country in which copper is mined can also affect price and volatility. Beyond these concerns, you may also wish to consider the following:
Environmental Issues: Mine waste and possible water pollution has often led to controversy over mining operations. Emissions from smelting and refining are also areas of concern and either of these may cause producers to have to review procedures and practices.
Key Industry Reports: Like many other markets, copper stockpiles or supply and demand data can have significant impact on the market. The International Copper Study Group releases a monthly bulletin and the NYMEX has fact sheets that are worth reviewing.
Potential World Supply: Like oil, copper has a "peak" theory which suggests that production will reach a maximum level and then decline as it is a finite resource. This information would have to be balanced against knowledge of the available copper for recycling as well as the possibility of substitutive metals i.e. aluminum was used in place of copper for wiring during certain periods.
Whether for forming tools for everyday living, coins or architectural and infrastructure applications, copper use is global. Highlights of copper applications are as follows: