How Is the Value of Copper Determined?

Supply, as in copper miners' ability to extract the metal from the earth, and demand, as in how many people and businesses are trying to buy copper, are two of the biggest factors influencing copper's market value, notes Worker strikes in copper mining areas, such as Peru and Chile, can have a strong impact on copper supply and the metal's price, but other factors, such as interest rates and the general economic climate can also influence copper prices. Macroeconomics can play a part in copper values, and its price may be negatively impacted by the availability of similar substitute metals, such as aluminum or iron.

Investors who are interested in predicting potential rises and falls in copper prices can look out for a few key indicators. Copper is a common ingredient for home construction, so if homebuilding is on the rise, demand for copper and copper prices are likely to rise. This is true not only in the United States but in so-called emerging markets such as China and India, as reported by As more people in these rapidly growing countries movie into cities, residential construction rises. Population growth and movement can therefore be considered an influence on copper's price. As a commodity, copper trades under the ticker symbol EHG.