Home > Research Prices > "Copper Prices Are Higher Amid Aggressive Interest Rate Hike & Stronger Dollar"
2022-10-27 2022-10-19 2022-10-03 2022-08-03 2022-05-03 2021-11-03 2022

"Copper Prices Are Higher Amid Aggressive Interest Rate Hike & Stronger Dollar"

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by RIM Research Team - 2316 Views

Copper prices in India are trading at Rs.656.95/KG, 0.70% down from the previous closing price.

Mumbai, India. Copper prices in India are down 0.70% or Rs.4.65 from the previous settlement price and are now trading at Rs.656.95/KG in the MCX futures.

Copper prices are significantly higher on Thursday owing to higher interest rate hikes and a stronger US dollar index. As expected by investors, the US Federal Reserve raised interest rates by 75 basis points yesterday, the fourth increase this year to combat rising inflation.

As a result, the US dollar index strengthened, and the Federal Reserve's aggressive rate hike will put additional pressure on global stock markets, particularly in emerging economies like India. Technically, the copper market is trading at higher levels, but demand remains under pressure as China continues to maintain its zero-covid policy.

However, because of rising interest rates, a global recession, and strict COVID curbs in top metals consumer China, Copper prices are expected to fluctuate at unexpected highs and lows in the near term.

Furthermore, most industrial metals prices, including Copper prices, have fallen this year to record lows due to bearish economic activity, which has supported low inventories. Even though Copper prices have fallen since then, it is still the best-performing commodity this year.

Despite weak economic activity and higher energy costs, demand for Copper Base Metal is expected to move into a small surplus in the coming days. Copper prices are expected to remain steady in the coming year after falling sharply in 2022, as tight inventories balance rising supply.

Dr. Copper, the New Gold is trading at Rs.656.95 per KG in the MCX Futures.

Copper Scrap prices in India also remain steady and are now trading at,

Copper Cable Scrap Prices (Mumbai): Rs.651/KG

Copper Heavy Scrap Prices (Mumbai): Rs.643/KG

Copper Wire Scrap Prices (Delhi): Rs.598/KG

Copper Utensil Scrap Prices (Mumbai): Rs.575/KG

The COMEX (US Metal Exchange) - US Copper prices slipped 0.57% from the previous settlement price and are now trading at $3.46/Lbs in the CME futures.

The US Fed's hawkish interest rate hike is expected to be more gradual in the US, but it may notify a negative signal to other major economies such as Europe, India, and Japan. Copper prices have reached record highs of $5 this year, but they have also fallen to 20-month lows due to recession fears.

Copper prices are almost 30% down from record high levels this year. As global recession fears and rising interest rates are stubbornly high this year, Copper prices are expected to be under pressure and can fluctuate in the near term.

On the demand side, despite the bearish economic activity, investors expected China to have a bullish demand growth, but the new covid pandemic forced China to implement new covid limitations early in the third quarter. Hopefully, Chinese demand and import data were moderately higher during times of strict covid limitations.

However, the entire Copper market is currently expecting China to relax its Covid lockdown and return to the market to invest in Copper. However, China is finding new covid cases on a daily basis in major industrial hubs.

But apart from China, copper markets must contend with slowing global economic growth as inflation and interest rates continue to rise. This notion had a significant impact on the red metal this year. Nonetheless, tightening supplies may raise Copper prices in 2023, especially if the pressure from high-interest rates subsides.

The Reddish Brown Metal is Trading at $3.46 per Pound in the CME Futures.

US Copper Scrap prices are moderately high and are now trading at,

Copper No.1 Scrap Prices (US): 3.05 USD/Lbs.

Copper No.2 Scrap Prices (US): 2.65 USD/Lbs.

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MCX

MCX Yearly Copper Price Data

MCX High
871.0
MCX Low
610.3
MCX Avg
728.10

COMEX

COMEX Yearly Copper Price Data

COMEX High
4.8055
COMEX Low
3.2455
COMEX Avg
4.0729

MCX Year To Date Copper Price Data

MCX High
871.0
MCX Low
610.3
MCX Avg
726.75

COMEX Year To Date Copper Price Data

COMEX High
4.8055
COMEX Low
3.2455
COMEX Avg
4.0322

MCX Monthly Copper Price Data

MCX High
661.6
MCX Low
653.05
MCX Avg
657.2

COMEX Monthly Copper Price Data

COMEX High
3.4845
COMEX Low
3.4245
COMEX Avg
3.4559
Category : Copper

Tags : Copper Price, MCX Copper Price, Copper Prices India, COMEX Copper Prices, Copper Prices US