The difference between American refined copper and LUN copper
1. American refined copper is a copper futures contract listed in COMEX (the New York Mercantile Exchange), commonly known as "American copper". COMEX's copper futures contract is traded in pounds sterling, and the quotation is divided into US dollars.
The United States is the largest copper producer, and its refined copper production ranks first in the world. 1992, the United States produced about 2160 thousand tons of refined copper, accounting for about 20% of the world's total output. Arizona, Utah, New Mexico and Texas in the west and southwest of the United States are the most important copper-producing areas in the United States, accounting for more than three-quarters of the country's total output. 1992 most of the copper produced in Chile is exported, and it is the largest copper exporter in the world.
2. Luntong is a copper futures contract traded on LME (London Metal Exchange), also known as "London Copper", or Luntong. LME is the largest copper futures trading market in the world, established in 1876, trading copper, aluminum, lead, zinc, nickel and aluminum alloys. The futures trading of copper began at 1877. There are two kinds of copper traded: negative grade copper and A grade copper. LME has the pricing power of copper futures, and global copper futures trading should refer to copper prices.
In terms of price, the two are basically the same, but the difference is that COMEX's copper futures contract is traded in pounds and quoted in cents; London copper, on the other hand, is traded in tons and quoted in dollars.
It should be pointed out that:
1, the third Wednesday of each month is a key point in the copper futures market. Because this day is the execution date of LME copper option in that month. With the implementation of options, the market long and short power will also change to some extent.
2. In a strong bull market, after the option is executed, with the addition of new bulls, the copper price may rise sharply; However, when the market is deadlocked at a high level, after the option is executed, the newly joined bulls may take the opportunity to take profits, while the original bulls in the market may choose to close some positions after losing the protection of the option.
3. Two weeks before the option execution date of the current month, that is, the first Wednesday of the current month, is the LME copper option announcement date. On this day, the market will have a general understanding of the execution of options in the current month.