The price of copper is going up because China is caught promising to deliver copper without having the copper to deliver.
For the most part this is only a "paper" issue. China sold copper futures with no intent of delivering. China was going to buy the futures back before the delivery date. Those who bought the copper futures did not want to take delivery of the copper. They simply want a premium to not take delivery. China does not want to pay the high premium.
As soon as the China deals all settle the price will fall to normal levels.
#59635 - 12/11/0502:24 PMRe: Think copper prices are high now?
As the Hunt Brothers found out, it's pretty hard to "corner" a commodity. The expectations of a higher price leads to increased production- which in turn drops the price. The use of alternative materials alsi increases.
Of greater import for today, though, is the experience of Nevada with mining- an experience that has repeated itself wherever dirt is dug up. Simply put, the media is frequently misled into reporting looming crisis; these stories in turn spur panic buying- creating a shortage, or price surge- where there would not otherwise be a problem.
Keep in mind that we are electricians...not speculators or fortune-tellers. Don't let yourself be stampeded into running off the cliff with all the other lemmings!
#59636 - 12/11/0505:11 PMRe: Think copper prices are high now?
has any one noticed since the copper prices are going up it seems like the copper is getting stiffer? esp in romex grounds....... maybe adding brass or another metal in with the copper due to price? i saw a rep from one of the wire manufacturers at the supply house and he said "they cant do that cause of ul requiring a certain spec" i think its hogwash any body else notice????