Copper is a versatile metal used in a wide range of applications including construction, electrical, transport and manufacturing. This paper will take an in-depth look at the factors that influence the price of copper, their impact on different industries and the potential impact on the global economy.

Supply and demand are one of the main factors that determine the price of copper.

Firstly, with the growth of the global economy, especially the increase in demand for electricity, the development of new energy sources and the rapid development of the electronics industry, the demand for copper continues to grow. Meanwhile, the supply of copper is mainly constrained by resource development, production costs and copper mine output. When supply exceeds demand, copper prices rise and vice versa. Copper prices also usually fluctuate with economic cycles. Another influencing factor is the international political and economic situation. Since copper is an important industrial raw material, its economic and political status is very important. The international situation also has a significant impact on copper prices. The global financial crisis, trade wars and COVID-19 all have an impact on the global situation, which in turn affects copper prices. Monetary policy in major global economies also affects copper prices. For example, when the Federal Reserve implements a tight monetary policy and the United States dollar strengthens, the price of copper in United States dollar terms will fall. Conversely, when loose monetary policy is implemented, the depreciation of the U.S. dollar will cause copper prices to rise. Also, the development and application of new technologies can have an impact on copper prices. For example, the development of new energy vehicles increases the demand for copper, while the decline of traditional manufacturing reduces the demand for copper. In addition, sudden political unrest, changes in trade policy and market expectations can disrupt supply chains and lead to uncertainty in copper prices.

Copper is an important industrial metal and its price volatility can have far-reaching impacts on different industries and the global economy.

Firstly, changes in copper prices will directly affect the copper mining and smelting industry, which in turn will affect industry profits and the scale of production and investment. Secondly, changes in copper prices will inevitably affect industries that use copper as a raw material, such as electricity, construction, home appliances, transport and so on. In the electric power industry, the production of wires, cables, transformers and other power equipment depends largely on copper, and changes in copper prices may affect the profits and scale of investment in the power industry. In the construction industry, the prices of copper products such as copper pipes and sheets are also affected by copper prices, which in turn affects construction costs. In the home appliance industry, the cost of copper components is also relatively high, so changes in copper prices have a significant impact on the cost and selling price of home appliance products. In the transport industry, copper is widely used in the manufacture of vehicles such as cars, trains and aircraft, so changes in copper prices will also affect the cost of manufacturing these vehicles.In addition, changes in copper prices have an impact on the global economy. Copper is one of the key commodities traded globally, and its price fluctuations affect the size and structure of global trade. At the same time, changes in copper prices also reflect, to some extent, the overall state of the global economy.

In summary, the price of copper is influenced by a multitude of factors including supply and demand, international political and economic situations, monetary policies, technological advancements, and market expectations. Additionally, sudden political upheavals, geopolitical conflicts, trade policies, and even changes in the direction of Sino-American relations and market expectations may disrupt the supply chain, leading to significant fluctuations in copper prices. These fluctuations not only impact the copper industry but also have far-reaching consequences for various sectors of the global economy.