The price of copper soared by 6400USD per ton, a record high in the past 15 years

The price of copper soared by 6400USD per ton, a record high in the past 15 years

Brass and copper are a variety that has a strong linkage with the international market. From March last year to May this year, the domestic copper price has soared from around 5550USD per ton to 11904 usd per ton. What pressure does the rising copper price bring to downstream processing companies? How will companies respond?

In the production workshop of a cable company in Yangzhou, Jiangsu, the person in charge of the company is checking the operation status of each production line. He told reporters that because the price of copper has reached a high point in the past 15 years, the cost of purchasing raw materials for the company is increasing every day, and it has to be in production. Links to save costs. Because the price is too high, companies dare not purchase raw materials. In the entire workshop, except for the finished cables, raw copper is almost invisible. At present, the company has reduced production capacity to reduce the risk of high-priced copper.

Industry insiders told reporters that the year with the highest copper price in history was 2006, when the price of copper reached about 12690 USD per ton. In the following 15 years, the price of copper has always been between 6400 USD and 9530 usd. As the epidemic swept the world last year, and then the world's major economies continued to expand the money supply to stimulate the economy, copper prices soared to the current more than 11120USD, a record high in the past 15 years. The reporter visited a number of companies and found that since May this year, copper processing companies have experienced production cuts. This is in sharp contrast to the raging production scene in the same period of previous years. Production has been forced to slow down and shipments have dropped significantly, resulting in high finished product inventories.

The increase in the price of raw materials, coupled with the superposition of exchange rate, freight and other factors, has led to a significant increase in the prices of some products. Suppliers are also actively making suggestions for customers, saving transportation costs through methods such as sub-packaging by sea.

For Liu Junming, the business owner, almost 70% of his sanitary ware products are made of copper, and the fluctuating copper price makes him feel pressured.

In order to alleviate the pressure, operators have reduced the impact of rising raw materials by purchasing and storing raw materials in batches in advance. At the same time, actively explore the domestic market and increase the domestic market share from the original 10% to the current 50%.

Report by Shenzhen Heat Hardware Co.,Ltd.

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