In this article, Baowu will take you to explain the reasons for the rise in copper prices from various aspects.

First of all, the relationship between supply and demand: the supply and demand of copper is the most direct and fundamental factor affecting the changes in copper prices. Generally speaking, if the supply exceeds the demand, the copper price will fall, on the contrary, if the supply exceeds the demand, the copper price will rise. The main factors affecting supply are: supply and demand of copper concentrate, smelter capacity and operating rate, imports, by-product income, industry production costs, and copper enterprise strikes. Among them, the world's largest copper-producing country, Chile, has more strikes in copper companies, which has a greater impact.

In addition, the London Metal Exchange (LME) and the New York Mercantile Exchange (COMEX) are the main copper trading markets in the world. Among them, the LME copper price is internationally authoritative because it acts as a pricing benchmark in the international point price trade. It is also the world's largest copper consumption market, so Chinese copper prices have a strong positive correlation with LME copper prices.

Finally, the trade of copper in the international market is generally priced and settled in US dollars, so the rise and fall of the US dollar usually causes the reverse movement of copper prices. However, the fundamental factor that determines the trend of copper price lies in the relationship between supply and demand of copper. The exchange rate factor cannot change the basic pattern of the copper market, but only exerts influence on the range and rhythm of fluctuations.

Copper is a metallic element and also a transition element. Pure copper is a soft metal, the surface is red-orange with metallic luster when it is just cut, and the element is purple-red. It has good ductility, high thermal conductivity and electrical conductivity, so it is the most commonly used material in cables and electrical and electronic components. It can also be used as a building material and can be composed of many kinds of alloys. Copper alloys have excellent mechanical properties and low resistivity, the most important of which are bronze and brass. In addition, copper is also a durable metal that can be recycled many times without compromising its mechanical properties.

The above are the main reasons for the rise in copper prices. In addition, there are some other additional factors that affect the price of copper. If you want to know more, please feel free to follow Baowu.