Copper prices are soaring in the charts touching a yearly high of $9,813 on Thursday. The spike in price comes after Trump paused tariffs for 90 days which led to the market boom. Dow Jones skyrocketed close to 3,000 points while Nasdaq Composite index surged 1,857 points. In addition, the S&P 500 index jumped 475 points making the broader markets experience a bounce back in the indices.
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In the commodity markets, gold, silver, and copper, among others turned to the green. The industrial-grade metal is now looking to breach the $10,000 mark if it holds on to the positive momentum. The markets could kick-start a bull run for the next three months as tariffs don’t play a role in deciding the prices.
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Commodity Market: Copper Could Hit $10,000 Next:
The price of copper is aiming to climb above its all-time high of $10,857 which it reached in May last year. The metal saw a gradual decline in price from Q3 of 2024 with demand dwindling around the world. However, the low production output increased copper’s demand as EV cars rely on the metal.
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Also, when its price plunged below the $8,500 mark early this year, Chinese buyers snapped up by purchasing the dip. For the initiated, China is the world’s largest consumer of copper and has a history of stepping in when the prices are low. Heavy Chinese buying had previously made the metal’s price rise after the 2008 and 2020 crashes.
China is the third biggest copper producer in the world with an output capacity of 1.8 million metric tonnes. Therefore, it wants copper premiums to remain in demand and snap it up when the prices are low. In conclusion, profits flow in from both commodity trading and exporting industrial-grade metal globally. If its prices breach the $10,000 mark, China will also be among the biggest winners.