伦敦五金交易市场分析

加拿大Assignment代写范文:“伦敦五金交易市场分析”，这篇论文主要描述的是在伦敦五金交易所关闭了库珀的交易后，就有着许多的供应需求信息在市场上反映出来，金属的价格随之有所波动，国际市场上金属的价格常常受到政治形势变化的影响，金属产业的繁荣也能够推动全球经济的发展。

1.      Article Summary

The article mainly delivers the information that the London Metal Exchange closes the cooper transaction because of the increasing supply-demand hopes from the whole market. On Thursday, the three-month copper at London Metal Exchange was up 1.2 percent from the past closing price and the price of copper reaches $US6753 a metric ton correspondingly. With regard to other metals at London Metal Exchange, they do not experience obvious increasing of the price. The aluminum closes 0.1 percent higher and the nickel closes 0.2 percent. Before, the price of the metal in the international market is largely affected by the international political situation, the ongoing ore-export ban by key exporters. As to the read metal, it is the productive resources for a lot other everyday goods. With the fast development of the everyday goods market, it definitely will motivate the development of the metal market in a natural way. On the basis, the global economy can be positively affected by the prosperity of the metal industry to a large extent.

2.      Introduction

With the fast development of the social economy, each country in the world is largely affected by the global economy. In the real life, it is full of a series of economical theories and concepts. With theoretical knowledge from the economical textbook, we can understand the economical society in a comprehensive way. In the essay, it plans to analyze and evaluate one economical article, which is related to the London Metal Exchange. The main point of the essay is to show these economical theories and concepts in the case, and combine them with the theoretical knowledge in a systematic way. On the basis, we can have a total understanding about the article and live a better life to a large extent. In the process of analyzing the economical article, it will focus on supply and demand, derived demand, spot market and future market, investment, consumption demand and investment development and many other aspects. On the basis, it will have a comprehensive understanding about the economical article to a large extent.

3.      Critical Analysis of the Article

In the main part of the essay, it will focus on these following aspects, supply and demand, derived demand, spot market and future market, investment, consumption demand and investment development.

3.1  Supply and Demand

In the market economy, the price of products is decided by the supply and demand situation from the whole market, and it can be seen from Chart 1.

Chart 1 Supply and Demand

As shown in Chart 1, the supply and demand from the whole market can largely affect the price level. In the case, the price of copper in London Metal Exchange reaches the highest point because of the increasing of the market demand. Investors in the market creates huge demands towards the copper, so the price of copper increases in a corresponding way. And the whole process can be seen from Chart 2.

Chart 2 Supply and Demand

With regard to the whole market, the price mechanism can be also explained by Chart 2. Also, the ongoing ore-export ban in key producer Indonesia have threatened global supply levels can also decrease the supply in the whole market, which can largely increase the price of the metal in a natural way. The supply and demand principle can be explained as following, the increasing of the demand and the decreasing of the supply can both improve the price level in the whole market (Larry, 2013).

3.2  Derived Demand

As shown in the case, the red metal is used to make a range of everyday goods, that is, the red metal is the material for other products. In the economic term, the demand for the red metal is derived demand, which is also called the indirect demand. The demand for the red metal is not for consumption, but it is used to produce other products for the whole market (Chirinko, 2011). The red metal is a special product in the producer market. The price of derived goods can create huge influences to other final products. Different from the derived product, the final product refers to these which are consumed by final users. For these producers, the red metal can be regarded as a kind of productive material and the price of the productive material affects the operation decision of the organization to a large extent. In order to improve the organizational performance, modern producers usually choose these productive materials with low price and high quality. For the producer of the productive material like the red metal, the productive material can be regarded as their products to some extent. For different parties in the market, the derived demand has different meanings (Schlicht, 2006).

3.3  Spot Market and Future Market

In the article, the London Metal Exchange belongs to the future market and it is largely related to the spot market. The price in the spot market and the future market is similar, so investors in the market usually choose the future market to decrease the price risks from the spot market. That is also the reason why the future market becomes so popular in recent years. In the future market, the real transaction seldom occurs to a large extent and it is just used to hedge the risk from the spot market. Another function of the future market like the London Metal Exchange is to make investment. For example, investors can choose to buy or sell certain amount of products in the near future according to his prediction of the price. In the process of buying and selling products in the future market, investors can obtain some benefits to a large extent. Combing the function of risk hedge and speculation, the future market becomes more and more popular in the market economy especially under the background of the globalization (Epaminontas, 2007).

3.4  Investment

The increasing of the price in the London Metal Exchange is caused by the prosperity in the investment market to some extent. In other words, the positive situation in the demand market prompts the improvement of the metal’s price in the future market. The investment decision of investors can be affected by a series of factors. Among all these factors, the interest rate is one of the most important factors. The relation between the interest rate and investment can be seen from Chart 3.

Chart 3 Interest Rate and Investment

In Chart 3, it shows the relation between the interest rate and investment. The decreasing of the interest rate can largely motivate the prosperity of the investment market. The interest rate is the most important cost for the investment decision making to a large extent.

In the case, the positive expectation about the global economy is another factor that motivates investors to expand investment in the market. The prosperity of the investment market largely increases the price of the metal in London Metal Exchange in a corresponding way. At the same time, the whole global market is tightly connected and it is called the general equilibrium phenomenon according to the economic terms.

3.5  Consumption Demand and Investment Development

The consumption and the investment are also related in the real economy. The confidence from the consumption market can cause a series of influences to the investment market. In other words, investors usually make investment decisions according to the performance from the consumption market in a comprehensive way.

4.      Conclusion

In the whole essay, it analyzes and evaluates the economical article in a comprehensive way. The focus of analysis in the essay is about supply and demand, derived demand, spot market and future market, investment, consumption demand and investment development. With regard to the supply and demand, the general price is largely decided by the supply and demand in the whole market. With respect to the derived demand, it refers to a special demand and it is used to connect the productive material and the final product to a large extent. As to the spot market and future market, the price in the spot market and the future market is similar, so investors in the market usually choose the future market to decrease the price risks from the spot market. From the perspective of the investment, it is largely affected by the interest rate as well as the performance in the consumption market.

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