The rise is too fast and too strong Copper prices may be high and low during the year

With the global emphasis on low carbon emissions and the use of sustainable energy, new demand such as photovoltaics and new energy vehicles has a great
impact on the change of traditional supply and demand.
Considering that countries including Central Europe will increase the encouragement of new energy construction in 2021, if the country's new energy plan can be implemented as scheduled, then the actual demand for copper will far exceed the supply, thus forming a state
of small destocking across the country.

In addition, since the world locked up some of its inventories through trade finance in 2020, these inventories will be sensitive
to changes in financial conditions.

If the renminbi no longer appreciates, inventories will flow out quickly, causing a significant impact on prices
.
How to weigh the contradiction between the two? From the analysis of monthly price fluctuations, the impact of financial attributes on copper prices will be greater than the impact of actual consumption on copper prices, which shows that it is more inclined to track changes
in China's exchange rate and interest rates.

Stable market price is the goal that enterprises look forward to, for the future trend of copper prices, it is expected that copper prices will be high and low during the year, copper prices rise too fast and too strong, so that it is completely out of fundamental support, it is expected that copper prices in the second half of 2021 will gradually return to a reasonable price range
.