Copper price hit a seven month high to hide new changes in the global economy

Three month futures on the London Metal Exchange, an international indicator, rose to $6216 a tonne on December 13, hitting a seven month high, Japanese media said. According to the report on December 17 on the website of Japan economic news, the reason why copper market can sensitively reflect the changes of the global economy is that copper is widely used in the fields of power infrastructure, home appliances and auto parts. According to the report, compared with the 2018 high of $7348 (appearing in June), the 2019 high is only about $6608 in April, and it will fall back after the summer as long as it is slightly higher than $6000. But copper has risen rapidly in the past week. After breaking the $6000 mark, it accelerated its pace of growth, surpassing the July high (around $6170). Despite the rapid recovery, there is still a distance from April's high. The hidden worry of copper ore as raw material supply is strengthening. In Chile, the main producing country, many mines and ports began to strike, which began to affect the supply of ore, taking the opportunity of students' protest against the rise of subway prices. In Peru, after the summer of 2019, due to road blockade and other reasons, the ore supply is in chaos. Reported that the rapid recovery of the leading market is the return of speculative funds. This means that for the time being, the global economy has avoided further acceleration of the slowdown. However, it is not clear whether copper prices will come out of the downturn since last year, the report said.