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Why does international copper prices continue to skyrocket?
From:定盈电子    Time:时间格式错误!
Tencent financial news According to "Barron Weekly" article, 2016 is the largest international fluctuations in copper prices a year. January 2016 As China's economic growth slowed down, copper prices continue to suffer lower pressure. The development of industrial infrastructure will be extensive use of copper, China's copper consumption accounted for nearly 40% of the global total copper consumption. So a slight change in China's economic growth is expected to affect the global copper prices. Since China's economic growth into the uncertainty of the region, the international copper futures trading volume appeared for nine consecutive quarters of the rally. From 3.4 million contracts in the fourth quarter of 2014 to 6.4 million contracts in 2016.
In the end what happened?
In this environment, more businesses and investors will expect more exposure to copper. That in the end what is the recent rise in copper prices so violent, copper prices have emerged for 11 consecutive trading days up the market. In addition to China's economic factors, there is a bigger factor that requires everyone's attention, which is Trump's policy. Trump government promised to announce a $ 140 billion infrastructure investment plan, which stimulated the market expected future demand for copper will rise sharply.
There is also a factor that the United States is actually a net importer of gold. This means that the new US government is focused on tax reform, and trade and infrastructure investment policies may affect copper prices.
At the same time, in the fourth quarter of 2016, China's economy also improved, copper demand began to rise, China's copper reserves lower than expected. Is expected in 2017 the Chinese economy will be relatively strong performance, which may stimulate more enterprises and investors to participate in the copper market investment. Finally, the US economic recovery, which allows investors to believe that even if the future demand for copper in China declined, the US demand can also make up.