The epidemic situation has caused changes in the world economy, and many enterprises have suffered great harm, making their survival difficult. In order to solve economic problems, many countries have started loose monetary policies and continuously increased investment to stimulate the economy. When the epidemic is under control and the economy begins to recover, many countries or governments will gradually tighten monetary policy to prevent inflation, thus reducing inflation. After hitting a new high recently, copper prices began to decline. I don't think copper will rise, because after the epidemic control, the output of copper has kept up, and the supply and demand are basically the same. At the same time, monetary policy has not continuously released water, so copper has no upward momentum.
First, the epidemic situation has been effectively controlled and the output of copper has also increased.
Economics tells us that the change of supply and demand is an important reason to determine the price. In the case of constant supply and increasing demand, prices will definitely rise. In the case of constant supply and reduced demand, prices will definitely fall. The supply of copper has increased, but the demand has not increased significantly, resulting in no room for copper prices to rise. The first delivery of international copper futures has been completed, indicating that the supply of copper is still sufficient and it is difficult for copper to continue to rise in the later period.
Second, monetary policy cannot always be loose, which is why copper prices will not rise.
The epidemic caused the world economy to shrink. When the government starts to stimulate the economy, it must consider inflation. At this time, it is impossible to keep releasing water for loose monetary policy, and monetary policy does not support the rise of copper prices.
The rise of copper actually shows that the economy has begun to recover, and the relationship between supply and demand of copper has begun to change, which is good for the economy. Only when the economy recovers can everyone have a better life. The gradual tightening of monetary policy will curb the rise of copper, which is why I think copper will not and will not continue to rise.