About Copper
Copper is a highly valuable and widely used industrial metal and is used in many sectors and products. The property market relies heavily on copper due to its widespread use in building construction and infrastructure. It is indispensable for electrical systems, wiring and other electrical appliances.
Due to the widespread use of copper, Copper futures is also one of the most actively traded futures contracts in commodity markets.
Traders often monitor the performance of copper futures. This is due to it being an indicator of economic activity and global market sentiment. This is because copper's widespread usage and sensitivity to economic trends make it an important barometer for overall economic health.
Trading Copper Futures
Traders can trade Copper Futures Contracts from various exchanges through Orient Futures Singapore.
Some exchanges that traders can trade Copper futures includes Shanghai International Energy Exchange (INE Shanghai), COMEX (a division of the New York Mercantile Exchange NYMEX), and the London Metal Exchange (LME).
Here are the different Copper Futures that traders can trade under the different exchanges with Orient Futures Singapore.
Figure 1: A list of Copper Futures that traders can trade under the different exchanges with Orient Futures Singapore and the different copper futures symbols.
Each exchange offers its own specifications and trading rules for copper futures. This allows market participants to choose the platform that best suits their trading needs. Click here to find out more.
Traders can leverage the services provided by Orient Futures Singapore to access and participate in Copper Futures trading on various exchanges. By doing so, they can explore opportunities and capitalize on market movements in the copper futures market.
Refined Copper Arbitrage Trading
Traders also have the option to engage in refined copper arbitrage trading. This process involves capitalizing on price discrepancies between different markets to profit from buying and selling refined copper.
This strategy requires monitoring the prices of refined copper in various regions and identifying opportunities where copper can be purchased at a lower price in one market and sold at a higher price in another.
Through refined copper arbitrage trading, traders enhance market efficiency by contributing to liquidity, balancing regional price differences, and exploiting market inefficiencies.
Find out more about What is Arbitrage Trading and Rubber Cross-Arbitrage.
Copper Futures News
Copper Prices Surges Amid China's Economic Moves
According to Reuters, Copper prices experienced an increase last week, driven by the anticipation of monetary easing in China.
LME Copper Futures Contracts (CMCU3) on the London Metal Exchange (LME) showed a 0.3% increase, reaching $8,382 per metric ton. However, it retreated from a session high of $8,448.
The rise in copper prices was influenced by expectations that China's central bank would increase liquidity and cut a key interest rate during the rollover of maturing medium-term policy loans on Monday. This move is aimed at stabilizing the Chinese economy.
Despite the positive momentum, gains in copper prices were constrained by China's loan data, with growth in outstanding total social financing (TSF), a crucial indicator of credit and liquidity and a measure of metals demand, dropping from 2.45 trillion yuan in November to 1.94 trillion yuan ($270.72 billion).
Reuters noted that the market pulled back after the release of Chinese loans data and anticipated a slowdown in metals market activity leading up to the Chinese Lunar New Year holiday in February.
The U.S. dollar index (USD) rose by approximately 0.9% this month due to stronger-than-expected U.S. data and reduced expectations of imminent interest rate cuts by the Federal Reserve. A stronger U.S. dollar can make dollar-priced metals more expensive for holders of other currencies, potentially impacting demand.
Reuters highlighted key drivers in the market, emphasizing that current concerns are not particularly focused on copper supply. Copper spreads, which represent discounts for cash copper against three-month copper (CMCU0-3), reached a record high of $108 a ton this week, with the discount last at $96 a ton.
In other metals, LME aluminum (CMAL3) declined by 0.8% to $2,218 per ton, zinc (CMZN3) slipped 0.2% to $2,498, lead (CMPB3) ceded 0.1% to $2,094, tin (CMSN3) increased by 0.2% to $24,600, and nickel (CMNI3) retreated by 0.6% to $16,315.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
