Copper is an industrial metal that tends to tell us about the health of the global economy. Red metal, which is an important building material for infrastructure, including special cable kipep , showed a double-digit win on the London Metal Exchange in the third quarter. In the age of modern technologies, cable products are in demand in all spheres of industry and the national economy. And the main metal for cable production is copper.
Copper is traded by both the LME in London and the COMEX division of the Chicago Mercantile Exchange in the United States, which is a prerequisite for higher copper cable prices in the future. The London copper contract is traded in dollars per tonne, and is dependent on the dollar's value for wearing against other currencies. The LME offers a forward contract and the most active trading takes place in the 90-day period.
The LME structure encourages producers and hedges consumers as deliveries can be made every business day of the year. The COMEX contract is standardized with delivery periods at the end of the contract months. Hence, there are differences between the two pricing mechanisms for red metal. However, both exchanges have copper prices in dollars, which is the world's reserve currency.
Since early January, the dollar has depreciated after trading to its highest level since 2002 at the beginning of the year. While a weak dollar provides support for the price of copper and other commodities, there is much stronger going on in the copper market today, with the underlying metal moving up and back to the $ 3 /lb level.
Chinese Congress and Copper
On October 18, the Chinese Party Congress will meet for the first time since 2012, and President Xi will consolidate his power as Secretary General of the Asian nation. In the run-up to Congress, China has been an aggressive buyer of raw materials, pushing prices down on many of the building blocks of infrastructure. Copper demand has increased as a result of Chinese purchases in recent months, but moderate economic growth in the United States, Europe and around the world has also boosted the price of the red metal.
