What determines the price of copper on the stock exchange?
Now there is every reason to believe that the sale of copper – one of the most attractive financial product markets . Try to understand why this is so and how to successfully play on the copper boom ?
Practical advice from stock analysts
In recent years, the red metal is rapidly increasing rating on the international market, which has made it a priority target for transactions on the exchange. But , as with any other commodity, is the rise and fall of prices.
In a fluctuating value of futures traders it is important to focus on key factors that affect pricing. This will open a position in the peak period , earning maximum profits with minimal risk .
Predictive analytics: what determines the price of copper on the stock exchange?
1. Copper rates directly reflect the mood in the manufacturing sector (especially electronics , electrical engineering, metallurgy) . Global demand determine the growing needs of a steadily developing economy of China.
Risk : If the increase of imported Chinese reserves of copper, quotations may collapse due to a sharp decline in demand .
2.Dinamika exchange rates is under the influence of international economic and political situation , which is defined by :
Eurozone crisis (in particular, the resolution of economic problems in Greece through debt restructuring ) ;
U.S. economic recovery ( reference are indicators of the labor market and the U.S. GDP ) ;
stable supply of metal – with interruptions due to strikes of workers an increase in prices .
Before the final stabilization of the political turmoil is not recommended to risk large-scale transactions as optimistic forecasts do not always come true . Betting is better to do as they say, in fact.
3 . Contact the price of industrial metals dependence on the dollar . The weaker U.S. dollar increases the cost of goods linked to it .
4 . World reserves of the red metal , as well as its development . Currently there is no deficiency . But as the depletion of the mines will be the parade exporters who have the highest offer – Chile , Indonesia , Canada and Australia, or the country prudently accumulated metall.K this note , the copper deposits are located mainly in five regions of the world :
Michigan and the U.S. Rocky Mountains ;
Canadian provinces of Ontario , Manitoba and Quebec ;
Peru and Chile – are concentrated almost a third of the world’s reserves of copper ;
Russia , Uzbekistan , Armenia and Kazakhstan ;
Copper Belt of Zambia and the Democratic Republic of the Congo.
This aspect must be considered in the development of long-term projects. It is highly probable that any of the above countries in the future to establish dominance in the international copper market.
5 . Copper prices anywhere in the world are set based on the results of trading on the major stock exchanges . Five leaders : U.S. NYSE ( USA ), NASDAQ ( USA ), AMEX ( USA ), LSE London Stock Exchange ( UK ), FSE Frankfurt Stock Exchange (XETRA) ( Germany) .