Copper is integral to manufacturing, excelling in electrical, heat, and sound conductivity. Traders focus on copper products like electronics and plumbing components. The standard lot size for futures and options is 2500 kilograms (2.5 MT).
Introduction
Copper ranks third in global metal consumption after steel and aluminium. As the best non-precious metal conductor, copper is valued for its strength, ductility, and resistance to corrosion, making it ideal for electrical wiring.
Global copper resources are estimated at 1.6 billion metric tonnes on land and 0.7 billion tonnes in deep-sea nodules, with one-third of copper being recycled. Produced in over 25 countries, copper’s widespread production lowers the risk of supply disruptions, though any challenge would heavily impact construction and power transmission sectors.
While India's copper production constitutes only 2% of global output, it does have some notable operations, such as the Khetri mines in Rajasthan. Gujarat is the leading state for copper production, housing several major mines and smelters.
Factors that Impact the Copper Price
Here are some key factors that impact copper market prices:
- Domestic Copper Prices: Copper prices in India are influenced by the prevailing international spot market rates and the USD-INR exchange rate.
- Commodity-Specific Events: The price of copper is impacted by events specific to the commodity, such as the establishment of new production facilities, changes in the metal's applications, and disruptions like natural disasters, supply interruptions, or strikes. Industry restructuring also plays a role in price fluctuations.
- Key Industry Demand: The automotive and electrical sectors are among the largest consumers of copper. Therefore, fluctuations in demand from these industries can have a significant impact on copper prices.
- Supply and Production Costs: The price of copper is also influenced by the costs associated with mining and refining the metal. Variations in production costs directly affect copper supply, thereby influencing its market price.
- Geopolitical Factors: Geopolitical issues, especially in major copper-producing nations like Chile and Peru, can lead to supply disruptions. Additionally, trade disputes and international tensions can also affect copper prices.
Things to Consider Before Trading in Copper
Before diving into copper trading, it's essential to consider several key factors to ensure informed decision-making:
- Market Volatility: Copper prices fluctuate, driven by global demand, geopolitical developments, and currency exchange rates. Understanding these factors and how they interact is essential for predicting price trends and making informed trading decisions.
- Regulatory Environment: Government policies, including trade tariffs, environmental regulations, and subsidies, can have a significant impact on copper trading. Staying informed about current and upcoming regulations is vital for anticipating changes in market conditions.
- Economic Indicators: Monitoring economic indicators such as global GDP growth, industrial production, and construction activity is crucial, as these metrics are strong predictors of copper demand. Changes in these indicators can signal shifts in copper prices.
- Investor Sentiment and Speculation: Copper prices can be influenced by investor sentiment and speculative activity in the commodity markets. Understanding market psychology and the potential impact of speculative trading is important for managing risk and timing trades effectively.
Copper Expiry Date Calendar 2024
Contract launch calendar for copper for the year 2024
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Option Contract Launch Month
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Option Contract Expiry Month
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Future Contract Launch Month
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Future Contract Expiry Month
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October 2023
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January 2024
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January 2024
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November 2023
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February 2024
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February 2024
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June 2024
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December 2023
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December 2024
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June 2024
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September 2024
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September 2024
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January 2025
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July 2024
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October 2024
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February 2025
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August 2024
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November 2024
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December 2024
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December 2024
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April 2025
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How to Trade in Copper via Angel One?
To trade copper via Angel One, follow these steps:
- Open a Demat and Trading Account: Start by opening a Demat and Trading Account with Angel One.
- Activate the Commodity Segment: Once your Demat account is ready to trade, make sure to activate the commodity segment to start trading in copper contracts and other commodities.
- Stay Informed: Monitor live copper prices, market movements, and news that could impact the market by following exchanges like MCX (Multi Commodity Exchange) and NCDEX (National Commodity and Derivatives Exchange).
- Execute Your Trades: Use the Angel One trading platform to place your trades according to your strategy.
- Implement Risk Management: Protect your trades by using risk management tools such as stop-loss orders to minimise potential losses.
