Copper Rising

Prices spike for crucial electric motor material

Copper futures briefly rose 17% to a record $5.89 per pound, the largest intraday increase for the commodity since 1989, before concluding Tuesday up 13% at $5.68.

Copper, the most commonly used conductor used in electrical wiring, including the wires use in rewinding motors. is a crucial material in electric motors due to its excellent electrical conductivity, which allows for efficient energy transfer. It is commonly used in motor windings, where it helps create the magnetic fields necessary for motor operation. Copper's durability and resistance to corrosion also make it ideal for long-lasting motor performance.

The spike in copper futures is largely seen as a reaction to recently imposed tariffs on the material. According to a July 8 article from Forbes, Morgan Stanley analysts said in a note Tuesday the proposed tariffs would support higher copper prices in the U.S. as the cost of bringing the metal into the country increases, but they noted this would likely be a short-term rise as the domestic inventory grows.

Copper prices can significantly impact industries like electromechanical manufacturing, as copper is a key material in electric motors, wiring, and other components.

Recently, copper futures have seen fluctuations, with prices spiking due to factors like supply chain disruptions, increased demand for renewable energy technologies, and global economic conditions.