Copper
The leading base metal and economic bellwether, nicknamed "Dr. Copper" for its ability to signal global economic health via demand from construction and manufacturing.
Copper trades on COMEX (US) and the LME (London Metal Exchange) in contracts of 25,000 lbs (COMEX) or 25 metric tonnes (LME). It is the most electrically conductive common metal and is indispensable in construction, power infrastructure, electric vehicles, and electronics.
Because copper demand is so closely tied to industrial activity, copper prices are treated as a leading economic indicator. Sustained rallies often precede or confirm global expansion; sustained selloffs can signal economic deterioration ahead of GDP prints.
The energy transition is a structural demand driver: EVs use 3–4× more copper than combustion vehicles, and electricity grid buildouts require enormous copper volumes.
Example
COMEX copper trades at $4.40/lb. A 25,000 lb contract has notional value of $110,000. A 10-cent move (common in an active session) generates $2,500 per contract.
Related Terms
Base Metals
Industrial metals — copper, aluminum, zinc, nickel, lead, tin — that trade primarily on the LME and are closely tied to global industrial output.
BeginnerBenchmark Price
A widely accepted reference price for a commodity that other grades, contracts, or products are priced against — WTI, Brent, Henry Hub, and COMEX gold are key examples.
BeginnerCommodity
A raw material or primary agricultural product that is interchangeable with others of the same grade and traded on organized exchanges.
BeginnerEnergy Complex
The collective term for energy-related commodities — crude oil, natural gas, refined products (gasoline, heating oil, diesel) — and the markets and instruments around them.
BeginnerSilver
A precious and industrial metal priced in $/troy oz on COMEX, with dual drivers: safe-haven demand and industrial demand (solar panels, electronics).
Intermediate