Copper is an essential metal that is widely used in many industries. It is used to make wires, pipes, coins, among many other things. But its price varies from time to time. The price of copper has historically been volatile, reflecting its varying demand.
In this article, we will look at the changes in copper prices in the past and the factors that have influenced them. This information can be useful for investors or those looking to purchase copper in the future.
To begin, let’s look at the historical changes in copper prices from 1983 to 2023. During the period from 1983 to 1992, copper spot prices trended upward, reaching a peak of $3.79 per pound in 1989. During this time, strong demand from China and other developing countries drove the price of copper higher.
From 1992 to 2006, copper prices recovered from the decline prior to 1992, but it was not until the Global Financial Crisis of 2009 that prices made a more dramatic move. This was due in part to reduced demand from China, as well as other parts of the world, and the resulting increase in supply. During this time, copper prices dropped to as low as $2.09 per pound.
From 2010 to 2013, copper prices began to recover and trend upward due to increasing demand in China, India, and other emerging markets. Prices hit a peak of $4.64 per pound in early 2011.
From 2014 to 2020, copper prices were relatively volatile, bouncing between $3.00 and $3.85 per pound. This was due in part to reduced demand from China, which had been the primary driver of the copper market for some time. Nonetheless, copper prices finally reached a new all-time high of $4.95 in 2021, as increased demand from the industrial and innovative technologies sectors drove up the price.
Finally, from 2021 to 2023, copper prices have continued to trend higher. This is due to a recovery of demand from China, India, and other emerging markets, along with increasing demand from the automotive and green energy sectors. The most recent copper spot price was at $5.75 per pound as of April 2023.
Overall, copper prices have been volatile over the past four decades, but with a recent uptick in demand, the copper market is looking more secure. As such, investors may be wise to consider investing in copper as a long-term play, or those looking to purchase copper should be aware of the market movements and trends.