Copper Futures (HG)

Each COMEX Copper (HG) futures contract represents 25,000 pounds of copper. The contract’s notional value equals 25,000 × the current copper price per pound.

For example, if copper trades at $4.00 per pound, the contract value is $100,000.

• Minimum tick size: $0.0005 per pound

• Tick value: $12.50 per contract

Calculation:
25,000 pounds × $0.0005 = $12.50 per tick.

This makes copper highly responsive to small price movements.

Profit or loss equals price movement × 25,000 pounds.

Example:
Copper rises from $3.90 to $4.00
$0.10 × 25,000 = $2,500 gain per contract

Because of its size, copper futures can generate substantial moves quickly.

Copper is often called “Dr. Copper” because it is viewed as a leading indicator of global economic health. Since copper is widely used in construction, manufacturing, and infrastructure, rising copper prices often signal economic expansion, while falling prices may indicate slowing growth.

Copper prices are influenced by:

• Global economic growth

• Chinese industrial demand

• Infrastructure spending

• U.S. dollar strength

• Interest rates

• LME warehouse inventories

• Energy transition demand (EVs, solar, grid expansion)

Copper is highly sensitive to macroeconomic trends.

• Contango: Future contract prices are higher than near-term contracts, often reflecting storage and financing costs.

• Backwardation: Near-term contracts trade higher than deferred months, typically indicating tight supply or strong immediate demand.

Understanding the copper term structure is important for spread traders and roll strategies.

Yes. Copper is generally more volatile than gold because it is tied directly to industrial demand and economic cycles. Gold often acts as a defensive asset, while copper behaves more like a pro-growth asset.

Yes. Copper futures are actively day traded due to liquidity and strong intraday price movement. However, the contract size and volatility require disciplined risk management.

China is the world’s largest consumer of copper. Chinese construction activity, real estate trends, manufacturing output, and government stimulus programs significantly impact global copper demand and HG futures pricing.