What are the Main Factors Affecting The Price of Copper?
Factors affecting copper prices include supply, demand, spot sales of commodities, market pressure, and current inventory levels. The Main Factors Affecting The Price of Copper 1. Supply and Demand According to economics, when a commodity is in short supply, its price will fall, otherwise it will rise. At the same time, the price will in turn affect supply and demand. When the price of a commodity rises, supply will increase and demand will decrease. Conversely, demand will rise and supply will decrease. Thus, price and supply, and demand will influence each other. An important indicator reflecting supply and demand is inventory, which is generally measured by stock exchanges. 2. Economic Situation Copper is an important industrial raw material and its demand is closely related to the economic situation. When the economy is growing, the demand for copper increases, which leads to higher copper prices. When the economy is in recession, copper demand shrinks and copper prices...