Copper prices rise due to demand and hope
On the New York Mercantile Exchange (Comex) market, the price of copper for delivery in May rose 0.52% at noon on Wednesday to US$4.028 per pound (US$8,861 per ton).
Three-month copper on the London Metal Exchange (LME) rose 0.5% to US$8,822 per ton, while the most actively traded Shanghai Futures Exchange (Shanghai Futures Exchange) April copper contract closed down 1.9% to 65330 yuan per ton .
Shanghai Futures Exchange (Shanghai Futures Exchange) April copper futures contract closed down 1.9%
Marex Spectron's commodity broker Anna Stablum told Reuters: "Metals are subject to large fluctuations in the macro field, and the market is shifting to cyclical assets, but concerns about asset bubbles have been severely hit. The Chinese stock market.".
"We are beginning to see that after the recent drop in copper prices, some downstream copper users are more willing to enter the market to buy metals, but most likely, we need to see prices stabilize first. The rapid growth we saw in February did prevent Purchases by physical users."
The chairman of Chinese metal trader Maike Group (Maike Group) said on Wednesday that copper prices will soar to record highs in the next 12 months due to strong demand from China's clean energy operations and underinvestment in global mineral supply over the years.
He Jinbi, who founded Maike in the 1990s, believes that as China builds metal-intensive renewable energy and electric vehicle infrastructure, there will be severe supply shortages of copper and other base metals in the future, and will be affected by capital inflows.
"The market will gradually accept it, because as the global consumer market recovers, there will also be a copper shortage in the European and American markets," he said.
"In the past five years, there has been a serious underinvestment in global mineral resources," Jinbi told Reuters.
The president of the China Base Metal Industry Association said on Tuesday that the industry should pay close attention to the risks of speculators pushing prices away from fundamentals, and warned that large fluctuations "do more harm than good."
Ge Honglin, party secretary of the China Nonferrous Metals Industry Association, said that rising metal prices may help upstream companies to a certain extent, but if they “blindly rise” beyond the fundamentals, they will “damage the entire industry chain. ".
Winland Metal supplies various grades of copper pipes and copper pipe fittings . Copper materials are widely used in various industries. Capillary copper pipes play a significant role in air conditioning, refrigeration, electronics and other industries.
