As we all know Copper prices over the years have shown extreme volatility affecting all of our businesses. In the last 12-months alone copper has traded as low as $2.54/lb and is currently trading at a 12 month high of $3.20/lb. This 20% swing is not unusual in the markets as it adds substantial risks to any contractors bidding and distribution inventory (See Feb Copper Futures Quotes).
Is the market going down, is the market going up, or is the market flat? We never know and are constantly looking for ways to protect ourselves. There are futures, there are copper contracts, there are manufacturers willing to quote firm pricing, but at a higher cost. What do we do? My partner Lee as a former commodities trader and I each have well over 30 year’s experience working with contractors to help mitigate these risks..
There are options, (No pun intended) to offer both at bid time and after award to help as each project offers it’s own specific list of challenges. I once read that supply and demand is what Wall Street says it is, not what it really is. Never is this more true than in the copper market with its wild swings for no apparent reason other than someone in South America has the hiccups..
We look forward to helping you manage your copper needs in the future..