Real Estate Has A Big Impact On Commodities Such As Copper.

The results showed that in copper with close ties to the boom of real estate. In general, since 2006, the real estate boom copper prices are rising, the opposite is falling. If from the Angle of supply and demand, prices and completed real estate area of growth should be a high correlation, the reason is that the copper in the real estate industry is mainly used in the completion stage, such as distribution, indoor wiring, sanitary ware, water pipes and the like.In practice, however, copper prices and real estate development investment growth is high, correlation of 0.73, and completed real estate area of growth is low, correlation is 0.38, on the one hand, the copper is directly used for real estate construction and installation project is less, used in building materials associated with real estate, cars and home appliances industry is more; Has the function of credit creation, on the other hand, real estate, real estate can reinforce financial attributes of copper, especially the investment demand of copper.Real estate through two levels of copper implications. One is the boom of real estate through economic growth to influence the consumption demand of copper. Property involved in the middle and lower reaches of many industries, such as the upper reaches of the building materials, including steel, aluminum and glass, etc.), downstream of the automobile, home appliances and sanitary ware, etc., and form a complete set of electricity, gas, greening and decoration industries, had a great influence on our country's economy. From the perspective of GDP contribution, in 2020, the real estate to GDP contribution rate of 9.38% over the previous year, far more than its value as a share of GDP, and more than the transportation, warehousing and postal service, wholesale and retail trade, accommodation and catering industry's contribution to GDP, has nothing to do with the second industry construction.Second, through the way of credit creation influence the investment demand of copper, copper by financial attributes of copper pricing on monetary factors. Data show that real estate is the main route for almost 10 years since credit creation. From the point of the credit creation process, in recent years to present the pattern: get reserves from the central bank, commercial Banks and lending, and at the same time of release every loan, automatic (for the entire banking system) to create an equal amount of deposits, thus promoting credit creation. In a more popular words, is "loans to create deposits, loans came first, after deposit". Create credit of real estate is, in general, by land or property as collateral to financial institutions financing, so by the real estate market can be roughly measure how much real estate to create credit. Created by our calculations, in 2010, real estate total credit is about 12.6 trillion yuan (increase), by 2020 to 36.1 trillion yuan (increase), accounting for 35.5% of the nominal GDP of the year.