Copper Prices Inch Up Amid Strong Industrial Demand and Rising Home Prices

Copper prices saw a small increase on Tuesday after data showed a rise in home prices in the US. The December delivery copper futures contract, the most actively traded, rose 0.2% or 7 cents to $3.6040 per pound on the New York Mercantile Exchange. This increase is driven by strong underlying industrial demand and concerns about supply, with copper futures just a few cents away from a two-year high. The rise in home prices is attributed to the use of copper products in residential construction, such as plumbing pipes and electrical wiring.

Key Takeaways:

• Copper prices increased by 0.2% or 7 cents to $3.6040 per pound on the New York Mercantile Exchange.
• The December delivery copper futures contract is just a few cents away from a two-year high.
• Strong underlying industrial demand and concerns about supply are driving the rise in copper prices.
• The rise in home prices is attributed to the use of copper products in residential construction.
• The S&P Case-Shiller home-price index of 10 major metropolitan areas rose 0.8% from June.
• Prices for copper reversed from early trading due to renewed sovereign debt concerns in Europe.
• Edward Meir, MF Global analyst, warned that potential downgrades in Ireland and Spain could be a downside game-changer for commodities.

Statistics:

• Copper prices increased by 0.2% or 7 cents to $3.6040 per pound on the New York Mercantile Exchange.
• The S&P Case-Shiller home-price index of 10 major metropolitan areas rose 0.8% from June.
• The 20-city index climbed 0.6% from June.
• Copper futures are sensitive to housing data because residential construction involves the use of many kinds of copper products.
• Prices for the red metal trade at levels that are near two-year highs.

Sources:

• Dow Jones Commodities News via Comtex
• New York Mercantile Exchange
• MF Global analyst Edward Meir
• S&P Case-Shiller home-price index