1. Supply and Necessity (1) According to the distribution of copper in domestic market, there are five regions with the most abundant copper deposits in the world: 1) the Western foot of the Andes Mountains in Peru and Chile in South America; 2) the Rocky and Great Ping Valley in the western United States; 3) Congo and Zambia in Africa; 4) the Republic of Kazakhstan; 5) Eastern and central Canada. From the point of view of national distribution, the world's copper capital converges in Chile, the United States, Zambia, CIS and Peru. Chile is the country with the richest copper capital in the world, and its copper reserves account for about one fourth of the world's total reserves. The United States and Japan are important producers of refined copper. Zambia and Zaire are important producers of copper in central Africa. All the copper they produce is imported. Germany and Belgium are producers of refined copper using imported copper concentrates and crude copper. In addition, Peru, Canada, Australia, Papua New Guinea, Poland and the former Yugoslavia are also important copper producers. Copper production has a long history of human copper smelting, but for a long time, because of the original method of copper smelting, copper production has been very low. After the emergence of contemporary copper smelting in the 17th century, copper production increased significantly. In 1928, the world's output of refined copper was 1.67 million tons. The metallurgical property of the war children sector grew rapidly. In 1950, only 3.15 million tons of refined copper were produced all over the world. In 1992, 11 million tons of refined copper were produced. The growth rate of copper production in different years is different. In 50 years, the growth rate of copper production increased by 4.7%, in 60 years, by 4.2%, in 70 years, by 2.07%, and in 80 years, by 1.5%. In 1999, the annual output of copper reached 14.3 million tons in the world. The output of major producers were Chile 2.59 million tons, the United States 2.1 million tons, Japan 1.35 million tons, China 1.04 million tons, Germany 6.97 million tons and Russia 6.64 million tons. The cost of copper was about 14.6 million tons worldwide in 1999, and the cost of copper would converge with that of the booming property countries. The United States is the largest copper consumer, spending 29.88 million tons in 1999, accounting for about one fifth of the world's total expenditure, followed by China's 1.46 million tons, Japan's 1.25 million tons and Germany's 1.09 million tons. In terms of industry, the largest copper expenditure is in the electrical property sector in 1980 and construction industry in 1990. According to statistics, in the mid-1980s in the United States, Japan and Western Europe, 47.8% of the copper consumption was spent on electrical property, 23.8% in machine manufacturing, 15.8% in construction, 8.8% in transportation and 8% in the rest.After 1990, great changes have taken place in the distribution of copper expenditure in Western countries. In the United States, for example, construction accounted for 41.4% of copper expenditure in 1998, electrical and electronic products accounted for 26.0%, transportation equipment 12.4%, machinery manufacturing 11.2%, and the rest 9.0%. Import and import of copper: 1) Chile: the largest importer of copper in the world. Most of the copper ores and copper produced are imported to the United States, Britain, Japan and other places; 2) Zambia: to the European Community, the United States, Japan and other places, but also to China. 3) Peru: the proven reserves rank fourth in the world, the annual mining volume ranks seventh in the world, the import volume ranks fifth in the world, and the products are mainly exported to the United States, Japan and other countries; 4) Zaire: most of the copper ores produced are imported, mainly to Western Europe, Japan and the United States; 5) Australia: 1/4 of its output is imported; 6) Canada: the country with the largest import of copper ores in the booming country; Imports account for 70% of production, sir. (2) Although China's copper production in the domestic market is poor in capital, it is one of the most important producers of copper in the world. In 1999, the output of copper reached 104,000 tons, accounting for 7.27% of the world's total output. Nowadays, copper production places converge in East China, where copper production accounts for 51.8% of the world's total output, of which Anhui and Jiangxi account for about 35%. From the point of view of the distribution of copper expenditure in China, the important areas of copper expenditure in China are in East and South China, which account for about 70% of the world's total expenditure. From the point of view of industry distribution, the most expensive industry of copper is the electronics and electrical industry. Construction, machinery manufacturing, transportation and other industries also consume a large amount of copper. Compared with the booming country, the proportion of copper spent in electronics, electrical industry and machine manufacturing industry in China is significantly higher than that in the booming country, while the proportion of copper spent in construction industry and transportation industry is much lower than that in the booming country. China's import and export of copper is a country with a shortage of copper capital. The material self-ratio of refined copper is only 40%. A large number of copper concentrates are imported every year. Material imports account for a large proportion of copper imports, and the increase of electrolytic copper imports is greater than that of semi-products (copper rods, tubes, etc.). Imports are the same, copper imports are small, and the main products are semi-finished products and processed products. With import tariffs slowly declining, copper imports in recent years are bound to increase compared with the early and mid-1990s. Material origin: the original non-ferrous metal property company, the National Bureau of Statistics, the National Customs Administration of the world's important copper importers: the United States, Japan, the European Community, China. 2. Smooth and fluent characteristics 1. The production and expenditure of copper in China are absolutely comparatively coincident. According to statistics, copper production and consumption in southeastern China are the lowest in the world, while copper production and consumption in eastern China rank first in the world. The production and sales of each region are not completely balanced. Copper production in East, Southeast, Northeast and Northeast China is larger than consumption, while copper production in North China and Central South China is less than consumption. Especially in Guangdong Province, the gap of annual production and demand reaches 80,000 tons, which constitutes a smooth pattern of copper flowing from Northeast and Southeast to North China and from Northeast and East China to Central and South China. 2. For a long time, because our country's copper has been a shortage commodity, our country has implemented the import and export policy of "wide import and strict export", import material tariff is 2%, import tariff has been up to 30%. Every year, it is necessary to import a proportionate number of standard copper materials and copper materials, so that the import volume of copper is much larger than that of import.In 1999, as domestic copper production increased and domestic supply slightly exceeded demand, the country began to gradually abolish import tariffs and copper imports increased. 3. Influencing price change component 1. Supply-demand relationship: production, expenditure, import and stock; supply-demand relationship is the most indirect component affecting commodity price: supply = production + import + stock, necessary = consumption + import equivalent supply > necessary quantity, price drops; when supply < span="> necessary quantity, price drops; when supply < span="> necessary quantity, price drops; when supply and demand are equal to necessary quantity, price drops; when supply and demand are equal to necessary quantity. When the quantity is equal to the original shape, the price will remain stable at all. 2. Domestic and domestic economic situation; copper is an important raw material for property, and its necessary quantity is closely related to the economic situation. When the economy grows forever, copper needs to increase so as to mobilize copper prices to rise. When the economy is cold, copper needs to shrink, which will drive copper prices down. For example, in the early 1990s, Western countries entered a new period of economic weakness, copper prices fell from $2969 in 1989 to $1995/ton in 1993; in 1994, the economy of the United States and other Western countries began to recover, the need for copper increased, and copper prices began to climb again; in 1997, when the Asian economic crisis broke out, copper consumption in all Asian regions (except China) declined sharply, causing copper prices to hold. Similarly, in the second half of 1999, the regional economy in Asia deteriorated, the US economy continued to increase, and copper prices rose slowly. Therefore, copper prices are closely related to the economic cycle. 3. Import and import policies and tariffs; for a long time, because China is a big Copper-Using country with insufficient copper capital, it has adopted the policy of "wide import and strict export" in import and import. The average import tax rate of copper and copper products is 2%, while the import tax is as high as 30%. In recent two years, with the fundamental balance of domestic copper supply and demand, the country has slowly lowered import tariffs, and copper can be imported at all. Thus, domestic copper prices are interacted with each other. 4. The prices of relevant domestic markets, such as LME and COMEX prices; London Metal Business Office (LME) and New York Commodity Business Office (COMEX) are important domestic copper business markets. The copper price of LME is a domestic giant, and the domestic copper price has a strong correlation with the copper price of LME. 5. The change of the growth trend of the copper industry; the consumption is an indirect component affecting the copper price, and the growth of the copper industry is an important component affecting the consumption. For example, in the mid-1980s, the United States, Japan and Western European countries spent the most on refined copper, the proportion of electrical property is the largest, China is no exception. After entering 90 years, the domestic pipeline copper industry has increased dramatically, becoming the most expensive foreign copper industry, and the housing start-up rate in the United States has become one of the components affecting copper prices. The fall in copper prices in 1994 and 95 was due to the growth of the construction industry. In the automotive industry, manufacturers are advocating replacing copper with aluminium to reduce the volume of copper used in the industry by lowering the vehicle weight. In addition, with the rapid development of science and technology, the scale of copper utilization is continually expanding. Copper has been opened in the fields of medicine, biology, superconductivity and environmental protection. Recently, IBM has adopted copper to replace aluminium in silicon chips, marking the latest breakthrough in copper's use of semiconductor technology. 6. With the development of science and technology and the adoption of new smelting methods, the production cost of copper has been reduced continuously. At present, the average cost of pyrometallurgical copper smelting and Hydrometallurgical copper smelting in China is 1400-1600 US dollars/t and 800-900 US dollars/t. The total output of hydrometallurgical copper has increased rapidly. It is estimated that the output of hydrometallurgical copper reached 2 million tons in 1998, accounting for 14.4% of the total output of refined copper, and its proportion is still increasing. 7. Business bias of domestic hedge funds and their remaining contractual funds; copper is an important commodity futures invested by domestic hedge funds, and the market entry and exit of funds have a certain impact on prices. For example, the collapse of copper prices in 1996, in addition to the promotion of Sumitomo turmoil, the U.S. funds into the market to sell short is also an important component of accelerating the decline in copper prices. 8. The price fluctuation of related commodities such as kerosene and gold will also affect the copper price. Kerosene and copper are important property materials, while gold and copper are metal commodities, so there is a certain correlation between kerosene and copper, gold and copper prices.