How do commercial businesses hedge copper futures price risk?

Commercial businesses hedge copper futures exposure using COMEX-traded futures, options, and swaps referenced to the HG benchmark contract. The leading industrial metal benchmark for construction, electronics, power grids, and EV manufacturing.

What is the contract size for Copper Futures futures (HG)?

The COMEX HG contract size is 25,000 pounds (~11.3 metric tons), quoted in U.S. Dollars & Cents per pound, with a tick value of $12.50 per $0.0005/pound per contract.

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Exchange Benchmark Coverage

Copper Futures

Primary ExchangeCOMEX

The leading industrial metal benchmark for construction, electronics, power grids, and EV manufacturing.

Contract Size & Unit25,000 pounds (~11.3 metric tons)

Benchmark SymbolHG

Primary Price Volatility Drivers

•China industrial manufacturing & property sector
•Global green energy / EV supply chain demand
•Mine disruptions in Chile and Peru
•LME & COMEX warehouse inventory stocks

Commercial Risk Hedging Tools

✓Contractor fixed-price bid hedges
✓Mining collar strategies
✓Fabricator short hedges against physical rod inventory

Physical Basis Dynamics & Location Differentials

COMEX prices reflect US cathode delivery; cash premiums apply for rod, wire, or custom alloys.

Advisory Engagement

Manage Copper Futures Volatility

Request a market-specific position review to evaluate basis risk, option collar boundaries, or swap pricing.