Why is copper price in line with international prices

The reasons for copper prices to align with international prices are multifaceted. ‌

Firstly, the international alignment of copper prices is closely related to the global economic situation. Copper, as an important industrial raw material, has a demand that increases with economic growth and then decreases during economic downturns. The fluctuations in the global economy directly affect the demand and price of copper, making copper prices somewhat consistent with the international economic situation. ‌

Secondly, there is a positive correlation between international crude oil prices and copper prices. The supply and demand situation of crude oil directly reflects the global economic situation, and copper has the function of resisting inflation. Therefore, copper prices have a long-term positive interaction with international crude oil prices. This relationship has to some extent brought copper prices in line with the international market. ‌

In addition, China's copper market is gradually aligning with international standards. China is the world's largest consumer of copper, and the copper prices released by the Shanghai Futures Exchange have a significant impact on the domestic market. As the position of the Chinese market in global copper trade continues to rise, the degree of alignment between domestic copper prices and international prices is also increasing. ‌

In summary, the international convergence of copper prices is the result of multiple factors, including the global economic situation, the impact of international crude oil prices, and the degree of internationalization of the Chinese market, all of which are driving copper prices to approach international prices. ‌