How Traders Influence Copper Prices

Merchants perform a number of functions in the copper market. As a major distribution arm of the copper industry, they secure scrap and other copper bearing materials for processing into usable refined shapes. These are ultimately sold to fabricators. Merchants ' hedging and arbitrage activities help keep values in proper relationship from product to product or region to region. Through these switching and trading operations, they optimize the flow of copper from mine to consumer. And finally, merchants act as a repository for copper units during times of surplus and a stockpile from which to draw during tines of shortage.