Copper is widely considered as one of the key cyclical commodities, given its extensive usage in construction, infrastructure and an array of equipment manufacturing. The biggest end-use is for the production of cables, wiring and electrical goods because of its excellent electricity conducting properties. The construction sector is the second largest user of copper, for plumbing, HVAC and building wiring applications.

Although found in abundance and widely extracted as well as recycled, the copper value chain is quite capital intensive. This makes the market susceptible to supply-side constraints, and therefore, volatile price fluctuations.

Copper's importance in world markets and responsiveness to global economic events make our high-grade COMEX copper futures and options contracts important risk management tools for commercial interests, as well as a potentially rewarding opportunity for investors who wish to participate in this market.


All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.

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