In countries dominated by manufacturing, copper is widely used in high-end products. As a metal with thousands of years of application history, copper has been applied to high-precision fields by controlling its purity, and has become an irreplaceable, scarce and economical industrial nerve. The production of copper (electrolytic copper) can obtain extremely high purity through electrolysis.
Copper concentrates are unevenly distributed all over the world, among which Chile, Zambia and Russia are rich in reserves. It has been used as a strategic material reserve and control by some countries. ,
As small as home lights, wires and switches, as large as mobile phones, color TVs, refrigerators and washing machines; A big manufacturing country widely uses generators as big as aircraft carriers!
It can be said that the copper industry is booming and the national high-end manufacturing industry is booming!
The Year of the Ox started the more vigorous development of manufacturing industry, and also gave birth to the bull market of copper. In less than two weeks, copper prices have ushered in a dozen consecutive rises! It is not clear whether this is hype or strong demand.
For the market, this madness has affected the price increase, which has become an upward trend. The rising trend of product prices appears! It is a great shock and test for production enterprises, and it is an extremely worrying shock and injury!
How important it is to plan ahead at this time! The author thinks that there are several ways to solve this strange phenomenon: first, strengthen strategic reserve; The second is to develop suitable substitutes; Third, the state participates in cracking down on illegal speculation; The fourth is to improve their production capacity.
Downstream demand skyrocketed and supply could not keep up. The rising cycle of nonferrous metals represented by copper will continue for some time.
The currency has depreciated.
Copper is the leader of industrial mineral resources. First of all, its skyrocketing means the inflow of funds. What kind of fund is this? What is certain is that it must be hot money. After the financial crisis and epidemic, entity enterprises do not have much liquidity to negotiate mineral resources. With the increase of hot money printing in the world, they can only buy resource goods to avoid risks. With the gradual control of the epidemic and the slow recovery of the economy, retail investors are also pouring in. As a commodity weather vane, the surge of copper and oil means that the commodity cow has arrived.
It means that the west will get rid of the epidemic, the world economy is expected to be high after the popularization of enterprise vaccines, and the economy will recover soon after increasing investment.
The rise in copper prices also reflects the current supply and demand relationship in the market. Because of the epidemic, in response to the price drop, copper factories around the world have reduced production or stopped production, while mining enterprises with lower costs continue to produce, while enterprises with higher costs have reduced production or stopped production. Reduced supply has supported copper prices, and copper producers such as Chile have taken measures to cut costs. In 2020, the global demand for copper will exceed 20 million tons, but China's demand will account for about half. The expected increase in demand will push up prices, and investors are optimistic about China's economy and demand growth. Coupled with the expectation of global economic recovery, copper prices are expected to challenge new highs.
The rise in copper prices also reflects the flow of funds. In the past, in order to fight the epidemic and avoid the national economic downturn, European and American countries borrowed a lot, printed money and issued coupons to encourage mass consumption. The amount of deposits is trillions. When the concept stocks of science and technology, medical care and new energy were fired, the valuation was too high and the bubble was serious. Capital began to pay attention to the low-priced raw material market for many years. The massive cash inflow brought by the rebound helped push up copper prices. Not only precious metals, but also food futures such as Huang Xiaoyu and energy futures such as oil and gas are rising sharply. In 202 1 year, the world economy will enter the period of inflation with high probability.
In this year's environment, cash will inevitably depreciate. We can invest a little raw materials to preserve the value, rationally allocate funds and avoid the loss of wealth.
Last year, it was said that commodities would increase in price this year and enter a bull market. As a metal commonly used in manufacturing and construction, with the recovery of the industry, the price of copper is inevitable.
The main reason for the soaring copper price lies not only in the optimistic expectation of the demand side, but also in the start of global inflation trading, and the copper supply has entered an era of low growth. The risk of insufficient copper supply has increased, and the global copper market is facing the biggest supply gap in a decade, which also provides the impetus for the rise of copper prices.
With the decrease of copper supply and the increase of copper price, the reprocessing and application of waste copper have also been affected. The price of scrap copper in China has also been greatly adjusted with the increase of copper price. From the perspective of scrap, the price of scrap copper has been rising all over the country since.
This is a good thing. With the popularization of vaccines, the impact of the epidemic on the economy is getting smaller and smaller, and the expectation for the economy is to develop in a good direction. As a commodity, copper is naturally increasing in price. Not only does copper do more, but now basically all commodities are rising. If you do business, you can buy it if you have money. This year will be a bumper harvest year.
Nonferrous metal resources are non-renewable. After the epidemic, a large number of national bonds issued by various countries cannot enter the bubble real estate, and it is a trend to flow into rare resources such as non-ferrous metals.
This means that inflation is very serious.