Copper prices fluctuate due to a variety of factors that influence supply and demand in the market. Here are some key reasons:

1. Economic Growth and Industrial Demand:
Global Economic Activity: Copper is widely used in construction, electrical wiring, and various industrial applications. Economic growth in countries like China, which is a major consumer of copper, can significantly impact demand and therefore prices.
Infrastructure Projects: Large infrastructure projects and industrial activities increase demand for copper, driving up prices.

2. Supply Disruptions:
Mining Output: The production levels of major copper producing countries (such as Chile, Peru, and the U.S.) affect supply. Issues like labour strikes, mine closures, or reduced output can decrease supply and push prices up.
Geopolitical Events: Political instability or changes in mining regulations in key copper producing countries can disrupt supply chains.

3. Inventory Levels:
Stockpiles and Inventories: Copper inventories held by major exchanges (like the London Metal Exchange) and producers can influence prices. High inventory levels typically lead to lower prices, while low inventories can drive prices up.

4. Currency Fluctuations:
U.S. Dollar Strength: Copper is priced in U.S. dollars on international markets. When the dollar strengthens, copper becomes more expensive for holders of other currencies, potentially reducing demand and lowering prices.

Exchange Rates: Changes in the value of currencies in copper producing and consuming countries can also affect prices.

5. Speculation and Investment:
Futures Trading: Speculative trading on commodities exchanges can lead to price volatility. Traders’ perceptions of future supply and demand can drive prices up or down.

Investment Demand: Increasing interest from investors in commodities as an asset class can impact copper prices.

6. Technological and Substitution Factors:
Technological Advances: Innovations that either increase the efficiency of copper usage or lead to the development of alternative materials can impact demand.

Substitution: The use of alternative materials like aluminium in place of copper in certain applications can reduce demand for copper and affect prices.

7. Energy Costs:
Production Costs: Energy is a major component of mining and refining costs. Higher energy prices can increase production costs, which might be passed on to copper prices.

8. Environmental Policies:
Regulations: Environmental regulations and policies aimed at reducing carbon emissions or protecting natural resources can affect the cost and feasibility of copper mining and production.

These factors, among others, interact in complex ways to influence the supply demand balance and consequently the price of copper in global markets. Cubralco is a leading supplier of copper tube, sheet and other copper plumbing products to the building materials, plumbing, heating and hot water market. Cubralco is a supporter of CuSP, the Copper Sustainability Partnership that supports the use of copper in the built environment. One of the key goals is to promote the use of copper against plastic pipe which can have negative effects to the environment and humans with regard to micro-plastic.