Analysis of the copper market and the direction of China’s copper industry

BcA. Ying Fang, BBA

Diplomová práce

Abstract:

As an important strategic raw material, copper plays a vital role in the world economy. This paper analyzes the distribution, production and consumption of international copper resources from different stages of the copper industry chain. It highlights the status, advantages and disadvantages of China’s copper industry in the international market and its development direction. In the empirical research section, this paper selects 6 variables including the global crude oil price, global gold price, U.S. IPI, China’s GDP, global copper consumption and Shanghai futures copper price to quantitatively analyze the dominant factors affecting global copper price through the linear regression model. Considering the correlation between the variables, two econometric modelings were established and tested separately. The study found that there is a highly close relationship between Shanghai copper futures price and global LME copper price, P-value is 0.0000134, Shanghai copper futures price can be said to impact or even dominate the trend of global copper price. Followed by global crude oil price and U.S. IPI also contributed to the fluctuation of global copper price. The global gold price plays a controversial role in the copper price changes, the main reason roots in its investment attributes. In addition, the superiority of the China’s copper industry and its existing problems were discovered through Porter’s Five-Force Analysis method to help it enhance its core competitiveness in international competitions.

Keywords

copper, copper industry chain, copper supply, copper consumption, copper price, financialization, pricing power

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 29. 3. 2019

Obhajoba závěrečné práce

• Vedoucí: Ing. Jiří Mach, Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program / obor:
Economics Policy and Administration / Business Administration