The main reason for the decline of copper is that supply exceeds demand, and it is also affected by many factors. The first is the dollar index, which is negatively correlated with commodities. When the dollar rises, commodity prices fall. Secondly, when other non-ferrous metals in the same plate plummet, they will naturally follow suit.

The decline in the capital market has caused the depreciation of various assets. Financial assets, including stocks and bonds, have depreciated to varying degrees, even the price of gold has plummeted, and the international crude oil price is also in the downward stage. However, the decline in the prices of means of production shows that the crisis is spreading from the network capital market to the real economy. It is the transmission between the capital market and the real economy that makes the real economy also decline. However, there is still a difference between the collapse of copper prices and the collapse of other financial assets. The collapse of financial assets is mainly caused by the accumulation of previous bubbles and investor panic. As an important material in industrial production, the price decline of copper is caused by the slowdown of economic activities and consumption, and the overall reason can be attributed to the imbalance between supply and demand.