The Study of Price Interaction of China and International Commodity: The Case of Copper

摘要

With the steadily rising prices of international commodities, China, as the world's manufacturing center, has paid a huge price for the "premium" of bulk commodities. So it becomes increasingly necessary and important for China to obtain more powerful bargaining power on international commodities. And the outbreak of financial crisis is a redistribution of the global economy. Therefore the paper will apply empirical test to examine the copper prices correlation between the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE) during the periods before and after the financial crisis. And the result shows that after the financial crisis the copper price of SHFE has posed more influence on that of LME.