What is the reason for the sharp drop in copper prices?

The news that copper prices have fallen sharply has attracted people's attention. Affected by the international situation, many commodity prices have fallen. For example, nickel in industrial metals dropped by 50%, and copper in the same metal industry plummeted by 3.42%, with a price of only $8,740 per ton, compared with 10747.5 in May. Is the decline in copper prices good or bad? Here are four factors that tell you what happened.

First, the impact of the international situation.

At first, the Federal Reserve made some money flow into the commodity trading market by raising interest rates. In order to improve the transaction rate, merchants started a price war, which virtually raised the price of goods, and copper prices also rose rapidly at this stage.

At that time, the epidemic situation in various countries was effectively controlled and the economy showed a recovery trend. In order to improve the economy quickly and make up for the vacancy caused by the epidemic, European and American countries have carried out large-scale fiscal stimulus to boost copper prices.

However, with the rapid rise of inflation in the United States, the United States had to withdraw the funds that had flowed into the commodity trading market before, which caused a series of commodities such as copper, which soared by this means, to plummet.

As a metal material, copper can be used to produce wires and cables and some electrical equipment. In addition, the state strongly recommended new energy vehicles and opened the copper market. But the epidemic is not over yet, and many countries have invested a lot of money to fight the epidemic.

Many people can't make ends meet and can only guarantee the most basic life. Therefore, the investment in non-essential items such as wires and cables, electrical appliances and electric vehicles is much lower than before. This indirectly leads to an oversupply of copper products and a corresponding decline in prices.

Second, the conflict between Russia and Ukraine tends to be stable.

Many of our guns and ammunition are made of copper, and Russia was once an exporter of copper. However, European countries have been cracking down on Russia because of this war, which led to the suppression of Russian copper exports, and copper prices soared in April.

But in fact, Russia is also a country that longs for world peace, hoping to solve the problem through negotiation, rather than confrontation by force. Therefore, Russia and Uzbekistan have conducted many negotiations. Negotiations between the two countries have gradually slowed down, armed struggle has decreased, and ammunition consumption has decreased, so the demand for copper has gradually declined and the price has also fallen.

Third, the global manufacturing PMI index has declined.

Unconsciously, the epidemic has occupied our three years. In the past three years, many industries have been reshuffled, and many real economies have closed down because of industry recession. As far as real estate is concerned, the materials needed for building houses can't be produced in time, the workers can't be in place in time, and the manufacturers responsible for manufacturing are afraid to start construction in an all-round way due to the epidemic, which has led to the decline of the manufacturing index.

It is another hot summer, and the outdoor temperature in many places has soared to over 40 degrees. It can be said that it is the hottest summer in recent years, but the purchase rate of air conditioners has not improved significantly this year. It may be that prices have gone up, people's money has been used to pay off mortgages and car loans, and there is no extra money to buy cool things, let alone copper products.

Chile, the world's largest copper supplier, is experiencing a double blow of tightening regulation and increasing taxes. Copper miners and mine owners went on strike because of disagreement. As a result, copper investors are not optimistic about this project, and the reduction of investment naturally leads to the continuous decline of copper prices.

Fourth, the tilt of national policies.

China cracked down on false propaganda and price fraud. And launched a special management of the futures market, hoping that the futures market price will be in a relatively stable situation, so that the futures market in China will not have much room for growth. As a member of the futures market, copper will undoubtedly be implicated.

European and American countries are trying to curb inflation and have no time to care about copper. However, the problems of Russia and Ukraine have not been well solved, and Australia is trying to solve the immigration problem. Every country is busy with its own problems. Only with internal harmony and no disorder can we develop the economy wholeheartedly. Therefore, the decline in copper prices is another symbol of the turmoil in various countries. But copper still has certain investment value.

With the implementation of global environmentalism, wind energy, solar energy and new energy vehicles have gradually entered the public eye. Some European countries have formulated new energy development plans and set targets for solar and wind power generation. I hope that copper prices will return to their peak one day.

label

New global standards and norms; P The study concluded: "Don't be fooled by the recent collapse of copper prices, because the supply shortage of copper will be very serious in the next few years, and the price will rise very high, which may make the global dependence on fossil fuels last longer." /feed/5243 fbf2b 2 1 193 13ae 98 144 BD 8 C5 a 0 DD 93238 d7e . JPEG？ token = c 8 cc 9 f 52 aa 8 e 6 EC 7570 a 847 b 66 c 38 EC 9