The international copper futures market has been declining so far. The macroeconomic situation. Copper is an important industrial raw material, and its demand is closely related to the economic situation. In the process of economic growth, the demand for copper increases, driving up the price of copper. Copper demand shrinks during the economic downturn, causing copper prices to fall. When analyzing the macroeconomics, two indicators are very important. One is the economic growth rate, or GDP growth rate, and the other is the growth rate of industrial production. Import and export policy Import and export policy, especially tariff policy, is an important means to control the import and export volume of a certain commodity and balance domestic supply and demand by adjusting the import and export costs of commodities. Since January 1, 2008, my country has implemented zero tariff on refined copper imports, and the export tax rate for high-purity refined copper is 5%. The export tax rate for copper master alloy is 10%, which reduces the import and export tax rate.

1. The expansion of copper consumption and alternative consumption are direct factors affecting copper prices, and the development of the copper industry is an important factor affecting consumption. For example, after the 1990s, the pipeline copper in the construction industry in developed countries increased significantly, and the construction industry became the industry with the largest copper consumption, which promoted the increase in international copper prices in the mid-1990s. The housing start-up rate in the United States also became one of the factors affecting copper prices. Since 2003, the development of China's real estate and electric power has greatly promoted the growth of copper consumption and has become one of the factors supporting copper prices. In the automotive industry, manufacturers are promoting the use of aluminum instead of copper to reduce vehicle weight, thereby reducing copper usage in the industry. In addition, with the rapid development of science and technology, the application scope of copper continues to expand, and copper begins to play a role in the fields of medicine, biology, superconductivity, and environmental protection. IBM (microblog) uses copper to replace aluminum in silicon chips, marking the latest breakthrough in the application of copper in semiconductor technology. These changes will affect copper consumption to varying degrees.

2. Copper production cost Production cost is the basis for measuring commodity price levels. The production cost of copper includes smelting cost and refining cost. Different mines calculate copper production costs differently. The most common economic analysis uses "cash flow break-even costs," which decrease as the value of the by-product increases. After the 1990s, production costs showed a downward trend. At present, the average comprehensive cash cost of pyrometallurgy in Western countries is about 70-75 cents/pound, and the average comprehensive cost of hydrometallurgy is about 45 cents/pound. Currently, hydrometallurgical copper production accounts for about 20% of total production. Domestic production cost calculations differ from international ones.

3. Processing fee (TC/RC): Changes in processing fee (TC/RC) reflect the changes in the gaming status of mines and smelters in the copper industry chain. In recent years, with the concentration of copper resources and the rapid growth of smelting capacity, TC/RC has shown a downward trend year by year. For example, the TC/RC signed by BHP Billiton, Jiangxi Copper, and Tongling in 2008 was 47.2/4.72, a 21% decrease from the annual terms in 2007. Fund Trading Direction Although the fund industry has a long history, it did not flourish until the 1990s. At the same time, the degree of fund participation in commodity futures trading has also increased significantly. Judging from the evolution of the copper market in the past decade, funds have played a role in many large markets.

4. The funds may be large or small, and the operating methods vary widely. Generally speaking, funds can be divided into two categories. First, macro funds, such as arbitrage funds, are large in scale, ranging from billions of dollars to tens of billions of dollars, and are mainly used for strategic long-term investments. The other is a short-term fund, managed by CTA. It's small, generally around $100 million. Short-term operations rely on technical analysis, so they are also called technical funds.