Copper Weekly Special Report based on 1 Lot Calculation:
GEOPOLITICS: US COPPER TARIFF FEARS SENT PRICES HIGH:
- BREAKING (MARCH 26): COPPER PRICE HIT A NEW ALL-TIME HIGH ($5.3702) ON REPORTS US PRESIDENT TRUMP COULD IMPLEMENT COPPER IMPORT TARIFFS WITHIN WEEKS (AHEAD OF PREVIOUS SCHEDULE). Estimates have shown that the USA has imported 500,000 tons of copper over the past period, up from 70,000 tons monthly normally. This massive amount of copper being transported to the U.S. could push copper prices to record highs and potentially leave top consumer China and the rest of the world critically short of copper supplies. (Source: Bloomberg and Reuters)
- POTENTIAL U.S. TARIFFS ON COPPER: There are reports that U.S. President Donald Trump could implement copper tariffs within weeks (ahead of the previous schedule). The U.S. relies on imports for 45% of its copper consumption, and a 25% tariff could disrupt supply chains.
SUPPLY SIDE:
- TOP COPPER PRODUCERS: The biggest producers of copper are: Chile (27% of the world total), China (8%), Peru (8%), the Democratic republic of Congo (6%), Australia (5%), Mexico (5%), Russia (3%), and Canada (2%).
DEMAND SIDE:
- TOP COPPER CONSUMERS: The biggest consumers of copper are: China (52% of the world’s total), the United States (7%), The European Union (8%), and Japan (4%).
- TOP COPPER INDUSTRIES: Copper is heavily demanded in the EV industry, renewable energy industry (wind and solar farms), electrical infrastructure, telecommunications, and construction. The EV and green industries show the biggest growth rates (10-15% and 5%, respectively) and will push the overall copper growth rate even higher in the future.
EVENTS (China):
- THURSDAY, APRIL 10, AT 02:30 GMT+1: CHINA INFLATION (CPI) (MARCH): A higher-than-expected reading could be positive for copper because it could signal a stronger economy, which is importing greater quantities of copper for its needs. This index measures the change in the price of goods and services from the perspective of the consumers. The data for February showed a decrease to -0.7%, missing analysts’ expectations of -0.4%.
- MONDAY, APRIL 16, AT 03:00 GMT+1: CHINA INDUSTRIAL PRODUCTION (YEAR ON YEAR) (MARCH): A higher-than-expected reading should be considered positive for copper because growing industrial production could increase the demand for copper, pushing the price upwards. The growth rate for the previous month was 5.9%, which was an increase from the expected rate of 5.3%.
- WEDNESDAY, APRIL 16 AT 03:00 GMT+1: CHINA GROSS DOMESTIC PRODUCT (YEAR ON YEAR) (GDP) (Q1): A higher-than-expected rating should be supportive for copper because it will signal a stronger demand for copper. Gross Domestic Product measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. The results for the previous quarter were 5,4% which was higher than the forecasted 5.0%.
COPPER, March 31, 2025
Current Price: 5.0400
|
COPPER |
Weekly |
|
Trend direction |
|
|
6.0000 |
|
|
5.7500 |
|
|
5.3000 |
|
|
4.8000 |
|
|
4.7000 |
|
|
4.6000 |
Example of calculation based on weekly trend direction for 1.00 Lot1
COPPER
|
Pivot Points |
||||||
|
Profit or loss in $ |
9,600 |
7,100 |
2,600 |
-2,400 |
-3,400 |
-4,400 |
|
Profit or loss in €2 |
8,872 |
6,562 |
2,403 |
-2,218 |
-3,142 |
-4,067 |
|
Profit or loss in £2 |
7,421 |
5,488 |
2,010 |
-1,855 |
-2,628 |
-3,401 |
|
Profit or loss in C$2 |
13,789 |
10,198 |
3,735 |
-3,447 |
-4,884 |
-6,320 |
- 1.00 lot is equivalent of 10 000 units
- Calculations for exchange rate used as of 14:22 (GMT+1) 31/03/2025
There is a possibility to use Stop-Loss and Take-Profit
- You may wish to consider closing your position in profit, even if it is lower than the suggested one.
- Trailing stop technique could protect the profit