Analysis Of China’s Copper Resources Supply And Demand Situation And Market Mechanism

By analyzing the global copper resources、productions、consumptions and trade structures, we can see that China’s copper reserves、mine productions of copper、refined copper consumptions and imports are at a disadvantage. In2010, China has become the largest refined copper consuming country and imported country in the world. The contradiction between supply and demand is very prominent. The dependence of the copper resources from the foreign countries is up to71%. Therefore, the analysis.of the copper resources supply and demand situation and the market mechanism to protect the safety of the copper resources of Chnia is particularly important.After analyzing the supply situation of the Chinese copper resources, the author finds that the copper resources are poor, and we will face a long-term import situation. In order to protect the security supply of the copper resources and maintain the rapid economic development, we continue to devote to discovering the large-very large copper deposits in the domestic. We should also expand the scale of the scrap copper recycling, improve the scrap copper processing technology, and increase the proportion of the scrap copper in the copper consumption. In addition, we should establish mature overseas supply system to ensure that does not pose a threat to China’s import of the copper resources in the international situation has undergone great changes in circumstances. We should also purchase the mineral rights, joint-stock and control the holdings and other methods to participate in the overseas copper resources development actively, increase the possession of the copper resources and the share of mining rights in the foreign countries. China should also establish not less than45days of imports of copper reserves.In this paper, the author use the per capita consumption of the mineral resources and the per capita GDP was S-shape track and the sector demand prediction method forecast the demand of the copper in China over the next two decades. The author concludes that the demand for copper will be on the summit around2025, and then maintain a plateau. China has been the largest copper resources consumption country and the demands will still grow in the next two decades. China had been at a disadvantage on the demand side, paid the high cost in the imports of the copper resources. So discuss the formation mechanism of the international copper prices to solve China’s high-priced imports of the copper is very important. The author analyses that the main factors affecting the formulation of the world copper prices are as follows:the supply and demand of the copper resource, the global economic situation, the speculation acts, the cost factors, the dollar index and other factors.In the long run, the up and down of the copper price is mainly determined by the global economic situation and the tight supply of the copper resources. However, in the short term, the fund speculation and the copper demand changes affect the copper price greatly. The copper price is determined by the financial attribute and industrial property. Currently, China is still in the passive acceptance position of the international price of copper. The Shanghai Futures Exchange in the global copper futures market position is becoming more important increasingly, gradually get rid of the position of the shadow of the London Metal Exchange market. China should seize the opportunity to increase the pricing power in the international copper market. According to the copper supply and demand trends of China, we develop our favorable copper price and guide the international copper price trend.We should protect our own interests try our best, and maintain the economic better and faster development.