Copper’s ability to predict turning points in economic cycles and gauge the overall health of the global economy is so strong that the base metal has earned the nickname “Dr. Copper” among insiders in the commodities markets.
Falling copper prices are often viewed as a leading indicator of an impending economic downturn owing to the metals’ wide variety of use cases in electrical, industrial, and transportation applications. And over the past few months, “Dr. Copper” has been sounding the alarm loud and clear.
Copper futures on the benchmark London Metal Exchange have fallen from highs of $10,730 per tonne in March to just $8,575 as of Thursday’s close, a more than 20% drop, which officially puts the metal into a bear market.
Using Nasdaq’s measure of copper prices, the metal has fallen over 17% in just two weeks and is now trading at just $3.74 per pound, after hitting a high in March of over $4.94.
Falling copper prices are often viewed as a leading indicator of an impending economic downturn owing to the metals’ wide variety of use cases in electrical, industrial, and transportation applications. And over the past few months, “Dr. Copper” has been sounding the alarm loud and clear.
Copper futures on the benchmark London Metal Exchange have fallen from highs of $10,730 per tonne in March to just $8,575 as of Thursday’s close, a more than 20% drop, which officially puts the metal into a bear market.
Using Nasdaq’s measure of copper prices, the metal has fallen over 17% in just two weeks and is now trading at just $3.74 per pound, after hitting a high in March of over $4.94.