MCX Copper Live Price Today

Quant's Today Trend score for MCX Copper is 7

* A trend score of greater than 5 signals that the commodity is bullish for the day while trend score of less than 2 signals bearish trend*

Copper is a soft, pliable and malleable metal. It is shiny and reddish-orange in appearance. It is the first metal used by humans thousands of years ago. It is known for its strength, flexibility, and high resistance to corrosion. These qualities of copper have made it the most preferred metal for electrical wiring in the buildings. It is the best conductor of electricity after silver.

Copper enjoys the status of “highly in demand” as it is the 3rd most consumed metal after aluminum and steel.

Copper is used in the following industries:

• Building and Construction
• Electrical and Electronics
• Telecom
• Railways
• Roofing and Industrial machinery

Though it has extensive uses, it is still not viewed as currency, unlike gold and silver, and therefore it is not as expensive as precious metals.

Underground mines and recycled copper scrap are the principal sources of the global supply.

South America has the most considerable number of mines, and the highest production of refined copper comes from China.

The top miners of copper are:

• Australia
• Canada
• Chile
• China
• Congo

As the global economy has grown and the need for infrastructure has risen, it has resulted in the increased demand.

The top consumers of copper are:

1. China
2. Russia
3. The European Union
4. The United States
5. Japan

Factors affecting the price of copper

It has a wide variety of uses in various industries; its prices reflect the strength of the economy.

The following four factors are the primary determinant of its price:

• Emerging Market: Emerging markets needs for housing, transportation, construction, and infrastructure grows at a fast pace, and it, in turn, pushes the demand for copper. As the demand increases, it further drives up the price. The slowdown in the economy hurts the price of the copper.
• US Housing Market: It is highly used in electrical wiring, roofing, plumbing fixtures, and insulation in the housing industry in the US. Thus, the demand for housing in the US directly affects the demand for copper in the USS. 50% of the demand in the US comes from its housing market; therefore, investors should pay close attention to the trend in the US housing market to predict future copper prices.
• Supply Disruptions: The factors affecting the supply of copper also affects its price. The political and environmental factors profoundly impact the costs of this base metal. The labor conditions and the political factors in the countries that are major suppliers of the copper play an essential role in determining the price. Events such as nationalizing the mining industry and labor strike lead to the disruption in the supply of it and thus push the prices high. Natural disasters such as earthquakes and landslides also slow down the output from mine. As the amount in the market reduces, it pushes the prices up and vice-versa.
• Substitution: Aluminum substitutes copper in power cables, electrical, and refrigeration equipment. Iron, lead, and Nickel also are suitable substitutes for it in some industries. The ease of availability of these substitutes dramatically determines the prices of it.

Reasons to invest in copper:

• Everlasting Demand: Due to its extensive usage in various industries, it is highly impossible to build infrastructure without copper. Therefore, the demand for it will last forever. It is one of the biggest reasons to invest in copper.
• Supply-Demand Imbalance: There is always an excess demand for it as there is distortion in supply due to mining restrictions and other factors. The investors can take advantage of this imbalance in demand and supply by investing in copper.
• Growing demand for housing: The need for it surges with the increase in demand for housing. The global housing demand is increasing at a fast pace as economies continue to grow. This growing demand for housing can be one of the reasons to invest in copper.
• The risk of investing: No investment is free from risk, and the same applies to copper. The two main risks that is associated with the investment are:
• Risk of the global recession: It will continue to be in demand until the economies continue to grow. However, if and when the recession will hit, the prices of copper will undoubtedly fall, and its demand will be severely affected.
• Substitutes: It faces the risk of being substituted by other metals. In the scenario of recession, the buyers are likely to move from it to the other cheaper options available in the market, and this will, in turn, affects the prices of copper more.

* Contract Launch Calendar Source MCXINDIA https://www.mcxindia.com/home