Overall, the Copper Monthly Metals Index MMI remained bearish, with a 4.65% decline from November to December. Copper Prices to Close 2024 Up, But the Outlook is Down Often a bellwether for the global economy, the price of copper became a bellwether for market emotionality throughout 2024. Despite lackluster demand conditions, copper prices embarked on a volatile year, which had knock-on effects for the entire base metal category.
Comex Copper Prices, Source MetalMiner Insights Q1 2024 saw a rather auspicious start. Many believed markets were on the heels of the Federal Reserve's first rate cut since March 2020. Markets also expected U.S. infrastructure and renewable efforts to gain momentum during the year, which would offer support to copper prices amid supply deficit concerns. However, sticky inflation and strong economic numbers got in the way of those hopes, while global demand conditions remained constrained. Source MetalMiner Insights As a result, Comex copper prices trended sideways through much of the first quarter. However, reports of plunging treatment and refining charges appeared to spook markets enough to see prices spike out of range by late March. Meanwhile, investment funds helped trigger the rise as they started to pile on long bets, offering momentum to the copper price trend. Overall, this translated to a modest 2.37% increase from the close of 2023 to the end of Q1. Q2 The momentum continued throughout Q2, with liquidity increasing across the entire base metal category. Even nickel, which had been plagued by a trading exodus since the March 2022 nickel squeeze, witnessed a notable increase in long bets. Many investors believed markets were on the verge of a supercycle. This was particularly true of copper, which investors saw as driven by rising electrification demand and constrained mine supply. Despite rising prices, metal markets appeared mostly well-stocke