2020 Copper Price Review

Phase 1: The sudden outbreak of the new crown epidemic in mid-to-late January has caused a large-scale stagnation on the national demand side, the economy has receded and quickly transmitted downstream, and the entire industry, especially the industrial sector, is under pressure. In addition, the outbreak of the overseas epidemic in March caused market panic to intensify. Assets other than the U.S. dollar were sold indiscriminately to exchange for liquidity, and the price of copper fell rapidly.

Phase 2: From April to June, driven by the active promotion of the resumption of work and production in China and the easing of fiscal and monetary policies, the improvement of currency liquidity and economic fundamentals led to a rebound in commodity prices, and the production and operation of copper mines in Chile and Peru Activities slowed down and supply tightening is expected to give a strong boost in copper prices.

Stage 3: Epidemics overseas, especially in Europe and the United States, have repeated. In order to win the election, the two parties in the United States have been unable to reach agreement on the new plan after the last round of stimulus expired. In addition, Trump also transferred internal conflicts to the outside world, increasing The friction between China and the United States has caused copper prices to fluctuate.

Phase 4: From November to December, the effectiveness of vaccines and storage conditions continue to be positive, which strengthens the market's confidence in the use of vaccines, and the uncertainty of the US general election is gradually lifted. Biden took the stage to boost risk sentiment. In addition, domestic automobile and home appliance data continued to improve, strengthening expectations for the recovery of related industries, and copper prices broke through upwards.