Copper prices have risen by more than 33% since the beginning of November, regaining price levels metals investors haven’t seen since July 2015. The red metal had been lagging behind growth in other metals prices through most of this year then jumped by more than it has since 2011.
The reasons for the jump appear to go beyond enthusiasm for an expected boost in demand since Donald Trump took office as U.S. President on January 20th.
John Gross, publisher of The Copper Journal, likewise sees the recent move as speculative. "There is no quick—and easy answer to address the near 70-cent move up over the past three months," he said.
“The best we can say is that after copper initially broke through resistance, more buying came in, and the buying accelerated as each previous high point was surpassed. The fundamentals have not changed in any meaningful way, and don’t warrant the move. This level of volatility is no good for anyone, except for speculators who got it right."
What does this all mean for the electrical contractor?
It means that next purchase of 500MCM is going to cost you a lot more than it did last year...