London copper futures prices break through $8,000
In the intraday trading on December 18, the London Metal Exchange (LME) copper price once rushed to US$8,028/ton, up 6.18% from the previous day, setting a new high since March 2013. This is an increase of 83.67% from the low price of US$4,371/ton in the first quarter of this year.
Domestic Shanghai copper prices also rose sharply. In the intraday session on December 18, Shanghai copper climbed to 59,600 yuan/ton, up 2.16% from the previous day, setting a new high since February 2013. This is an increase of nearly 70% from the 35,300 yuan/ton during the trough in March this year.
Affected by the positive impact of the copper price boost, the stocks of Chinese listed companies in the related copper industry rose to a breeze in the context of the overall decline in the market today.
As of the close on December 18, Zijin Mining (601899.SH) closed at 9.21 yuan per share, up 4.3%, and the stock price was at a high level in the past nine years.
Tibet Mining (000762.SZ) closed at 12.92 yuan per share, up 3.28%, and has risen 92.55% from the low stock price in May this year. Jiangxi Copper (600362.SH) closed at 21.41 yuan per share, up 2.34%, at the highest level in the past two years. ,
Yunnan Copper (000878.SZ) closed at 15.64 yuan per share, up 0.97%; Tongling Nonferrous (000630.SZ) closed at 2.57 yuan per share, up 0.78%.
According to the China Galaxy Securities Research Report, copper is the most widely used basic metal and important industrial raw material, and its terminal demand is used in electrical, light industry, machinery, construction, and automotive fields. When the global economy continues to prosper, the demand for copper will increase overall.
The research report stated that with China’s effective control of the epidemic, economic activities returned to normal, and the European and American countries lifted their isolation and restarted the economy, the trend of global economic bottoming and recovery is gradually strengthening, superimposed on the strong monetary easing policy and fiscal stimulus plan provided to the market. With super ample liquidity, copper prices have rebounded sharply recently.
Copper demand is improving, but global copper mine supply is in short supply this year.
According to the data reported by the World Bureau of Metal Statistics (WBMS) on December 16, as of October this year, the global copper market was short of 1.143 million tons. Last year, the copper supply shortage was 383,000 tons.
This is mainly due to the fact that overseas mines are greatly affected by the new crown epidemic. In July of this year, Chilean National Copper Corporation (Codelco) reduced some employees, slowed down some projects, and closed Chile's Chuquicamata copper smelting plant.
The global supply of copper resources mainly comes from South America. Chile is the world's largest copper mining area.
Since the beginning of this year, international copper prices have experienced a V-shaped trend.
At the beginning of the year, the sudden new crown epidemic hit most industries, the market panic rose sharply, and the price of copper plummeted. In the first quarter, the LME copper price once fell below the cost line, hitting a minimum of US$4,371/ton.
After the end of March, copper prices entered an upward channel. As of the end of June, the LME copper price closed at US$6039/ton. However, the average LME copper price in the first half of the year was US$5525.5/ton, still a year-on-year decrease of about 10%.
In the second half of the year, copper prices continued their upward trend. In early September, copper prices climbed to a new high in the past two years. Copper prices continued to rise in October and November. As of the end of November, China's Shanghai copper prices and international copper prices both hit new highs in the past seven years.
