The spread of the global epidemic has had a great impact on the copper market

In terms of import and export, China's copper concentrate, crude copper, refined copper and other raw materials are mainly imported from South America, Africa, Australia, Southeast Asia and Central Asia and other copper-rich regions, of which refined copper imports from Japan and South Korea, Europe accounted for 9.
5% and 11%
of the total domestic imports.
The gap between domestic refined copper production and consumption has gradually narrowed in recent years, and the rigid demand for imports has declined, and considering that the consumption of refined copper this year is affected by the epidemic at home and abroad, import demand is bound to decrease, so the import trade of the above products is relatively limited
by the epidemic in Europe, Japan and South Korea.
At the same time, the global high-end copper production capacity is limited, if the import from Europe, Japan and South Korea is blocked, it is difficult to find a source of replacement in the short term, which will have a certain negative impact
on the domestic high-end copper product demand industries such as electronics, equipment manufacturing and other industries.
Although on the other hand, this situation also helps to promote the upgrading of domestic related copper processing materials products and reshape the industrial structure, it takes time to complete, and "far water can not quench near thirst"
.

In terms of consumption, Asia is the world's largest refined copper production region, in addition to China, Japan, South Korea ranked second and third in Asia, and many of them are exported to China, so far there is no news affecting the production of refined copper in the two countries, but if the epidemic continues to worsen, it is necessary to observe and assess the impact
on production.
Europe, Japan and South Korea are all important destinations for the export of electronics, home appliances, mechanical and electrical products in China, if the development of the epidemic has an important impact on the export of the above products, it will have a negative impact
on the consumption of related copper processing products in China.
At present, the overall economic situation in Europe, Japan and South Korea is not good, and the development of the epidemic will further drag down the economy, also put greater pressure on copper consumption in the region, and negatively affect
global copper consumption.

As the epidemic spreads and develops globally, it will drag down the global economy, whether from the fundamental or capital side, it will have a negative impact on copper prices, and copper prices face greater risk
of decline.
In March, under the background of the domestic government encouraging enterprises to resume work and production, the start of enterprises was significantly improved month-on-month, but because downstream consumption recovery still needs a process, and due to the impact of the epidemic, most small and medium-sized enterprises are facing capital turnover problems, a large increase in new orders is expected to be delayed, and in the short term, the terminal situation is expected to improve comprehensively as early as late March to April
.