Copper prices have fallen more than 16% from their $9,435 per tonne January high. The metal is now trading at its lowest level since November, at around $7,900, and is just four percentage points away from officially falling into a bear market. You might ask: So what? Most people don’t go to the copper store once a week or even once a year, and it’s not a metal that usually touches people’s waking lives. The thing is, copper prices have been a reliable recession indicator over the past 30 years.
Although you may not think of it often, copper is the third most consumed metal globally and is used across a variety of industries because of its resistance to corrosion and ability to conduct both heat and electricity. The metal is such a critical facet of the world’s economy that analysts often use it as a gauge of industrial and consumer demand as well as a recession indicator, giving it the nickname “Dr. Copper.”
