The Relation Between Copper Prices, Warehouse Stocks and Currencies

For those of you reading (or writing) that copper is in a "bubble" simply because the price is up dramatically, I thought I would share this graph with you showing the relation between the spot price of copper and the warehouse stocks (aka inventory) of copper at the COMEX since 1974. Admittedly, the COMEX is not the only place that copper can be stored (can't forget about LME) but it is a good start.

This graph is a little out of date (hey, this is free information!) but I think the supply-demand picture is pretty clear. Add into this USD weakness against global currencies, and you should be able to put the moves in the price of copper into context (supply, demand and currency). Current COMEX Copper stocks are ~20k short tons, and LME copper stocks are ~116k metric tons.

Enjoy, and any feedback is appreciated. Copper is priced in dollars and cents per pound, and warehouse stocks are given in thousands of short tons, with a "short ton" being the name for a US ton (2,000 lbs), equivalent to 0.907 metric tons. - Ed

Putting Together the Increase in the Price of Copper
Copper Spot Price, 5 years

LME Warehouse Stocks, 5 Years

NYMEX/COMEX Warehouse Stocks, 60 Days
(Notice how low current inventory is relative to the 1974-2004 graph above) 

USD to EUR, 5 Years