Copper has started a new round of rising行情, come 4E to seize the bulk opportunity

After the surge in gold prices, another metal has become popular. Since March, global copper prices have continued to rise, with international copper prices breaking through the $9,000 per ton mark, attracting significant attention from the capital markets. This round of copper price increases has sparked widespread discussion and speculation both within and outside the industry. What exactly has caused this surge in copper prices? How will copper prices develop in the future?

Several Major Reasons for the Rise in Copper Prices

The reasons for the rise in copper prices can mainly be attributed to three aspects: supply and demand relationships, macroeconomic factors, and structural demand.

Firstly, the supply and demand relationship is one of the important factors affecting copper prices. Recently, the reduction of high-quality copper mine resources and the difficulty in increasing production at the smelting end have led to a weak copper supply. At the same time, the rise of electric vehicles and the arrival of replacement cycles for electrical equipment have gradually increased the demand for copper. Analysts point out that the expectations for copper supply and demand are shifting from surplus to shortage, which is also one of the important reasons for the current rise in copper prices.

Secondly, macroeconomic factors have also played a role in driving copper prices. As the world's largest copper consumer, China's government support policies for metal-intensive industries, as well as measures to promote large-scale equipment replacements, especially in the home appliance and electric vehicle sectors, will provide strong support for copper prices. On the other hand, the weakness in the U.S. labor market and expectations for the Federal Reserve to end its interest rate hike cycle will also put pressure on the dollar, thereby benefiting metal prices.

Finally, structural demand is also an important factor in the rise of copper prices. With the ongoing development of decarbonization and the artificial intelligence boom, confidence in copper prices remains strong. Computing power is the foundation of development in the AI world, and the bottleneck of computing power ultimately comes down to electricity. As the competition for AI capabilities intensifies, the struggle for electricity becomes increasingly important. Copper, as a key component of the energy transition ecosystem, is crucial for manufacturing electric vehicles, power grids, and wind turbines.

Copper Prices Are Generally Optimistic for the Future

The market generally holds an optimistic view on the future trend of copper prices. Citigroup recently expressed a bullish attitude towards copper in its report, highlighting several bullish factors. Firstly, the continuous recovery of the Chinese economy, coupled with expectations of easing from the Federal Reserve, as well as the growth in structural demand and supply risks in 2024, have become supporting factors for copper prices. Overall, copper has withstood the cyclical weakness since 2022, and the chances of price increases are rising. Investors' expectations for a rebound in global manufacturing at the bottom are strengthening, and the net long positions held also indicate that there is more room for copper prices to rise.

Join 4E and Seize the Opportunity of Rising Copper Prices

The trading opportunities brought about by the rise in copper prices should not be overlooked. Investors can participate in copper price trading through various means, including copper derivatives trading offered by the 4E Exchange. The 4E Exchange supports long and short trading with up to 50 times leverage, featuring advantages such as low spreads, transparent quotes, licensed operations, and safety compliance, with a minimum investment threshold of less than $8, supporting cryptocurrency deposits. The 4E platform not only supports trading in commodities such as gold, silver, crude oil, and copper but also supports various financial assets such as cryptocurrencies, foreign exchange, stocks, and indices, providing investors with more convenient and flexible trading options.

The current rise in copper prices is supported by multiple factors, and the market holds an optimistic view on the future performance of copper prices. Investors can seize the opportunities brought about by the rise in copper prices through suitable trading platforms to maximize investment returns.