Interesting how much the copper market is currently moving. Anyone involved with commodities simply cannot ignore this metal – and there are good reasons for that.

Copper is everywhere: in power lines, solar panels, electric vehicles, wind turbines. Modern infrastructure cannot function without copper. This makes the price of 1 ton of copper an important indicator of global economic activity. If you want to understand how the world economy is doing, you should look at copper.

The price movements of recent years are remarkable. At the beginning of 2025, it was around $4.85 per pound, then suddenly rose to over $5.84 – a jump of nearly 20% in just a few months. The current price of 1 ton of copper is significantly higher than it was a year ago. Over the past 12 months, that’s an increase of about 20%, and over 6 months, even 29%.

What is driving these movements? Several factors are at play. China buys nearly half of the globally mined copper – when the Chinese economy is booming, demand increases. Conversely: when China cuts back, prices fall. The dollar exchange rate also plays a role. A strong dollar makes copper more expensive for buyers outside the US, which dampens demand. Interest rates and inflation are additional factors – high interest rates make copper less attractive, while fears of inflation increase demand for commodities as a hedge.

Historical perspective helps with understanding. From 2001 to 2011, copper experienced a boom – the price rose from $0.68 to $4.49, an increase of over 560%. The reason was China’s opening and massive infrastructure development. Then came a bear market in 2016, with the price falling to $2. Since then, it has been climbing again. The price of 1 ton of copper has tripled since 2016.

What could happen in the future? Former analysts from Goldman Sachs, JP Morgan, and UBS predicted prices between $9,000 and $11,400 per ton for 2025. These forecasts are now outdated – reality has partly surpassed them. It now depends on how global trade policies develop, whether China’s economy picks up, and how quickly copper production is expanded.

Those looking to invest in copper have several options. Futures are for experienced traders with capital – LME and COMEX offer contracts. ETCs are more practical: buy them like stocks, with low fees (0.45-0.49% per year), no physical storage needed. Copper stocks from mining companies like BHP or Rio Tinto benefit disproportionately from price increases. CFDs allow for speculative short-term trades with leverage. Buying physical copper is impractical for retail investors – storage and insurance quickly become expensive.

Traders should have a strategy. Trend followers use moving averages to find entry and exit points. Fundamental traders monitor economic data, especially from China. Importantly: don’t forget risk management. A position should not exceed 5% of trading capital, and stop-loss orders are essential. And diversification – don’t put everything into copper alone, but balance your portfolio.

Conclusion: The price of 1 ton of copper is currently high, driven by demand for green energy and e-mobility. Opportunities are there, but so are risks. Long-term investors can use copper as a diversifier in their portfolio. Short-term traders need experience and solid risk management. In any case, it’s worth keeping an eye on this market.