In the production workshop of a cable company in Yangzhou, Jiangsu, the company's head is checking the operating conditions of each production line. He told reporters that since the copper price has reached a high point in the past 15 years, the cost of enterprises purchasing raw

metal copper is a variety with strong linkage with the international market. From March last year to May this year, the domestic copper price of soared from around 35,000 yuan per ton to 75,000 yuan per ton. What kind of pressure does the rise in copper prices bring to downstream processing companies? How will the company respond?

Copper price runs at a high level. Processing companies compress production capacity

In the production workshop of a cable company in Yangzhou, Jiangsu, the company's head is checking the operating status of each production line. He told reporters that since the copper price has reached a high point in the past 15 years, the cost of enterprises purchasing raw materials every day is increasing, and they have to save costs in the production process. Due to the high price, companies dare not purchase raw materials. In the entire workshop, except for finished cables, the raw material copper is almost impossible to see. has now compressed production capacity to reduce the risks brought by high-priced copper.

The company's head told reporters that the company's products mainly supply domestic power plants and nuclear power projects, and the orders are all purchase prices set in the early stage. 's current copper price has risen too quickly, and the production cost has increased by at least 50%. Since the contract has been signed in the early stage, it is very difficult for the company to adjust the price with the terminal customers. At present, the company's heads are busy with every day to discuss the floating pricing mechanism with downstream customers.

Dai Yongtuo, general manager of a Jiangsu electrical company: The price of core raw materials such as cannot afford it.

Industry insiders told reporters that the highest copper price in history was in 2006, when the copper price reached about 80,000 yuan per ton. In the following 15 years, the copper price has always been between 40,000 and 60,000 yuan. Last year, as the epidemic swept the world, major economies around the world continued to expand their money supply to stimulate the economy, and the price of copper soared to more than 70,000 yuan, hitting a new high in the past 15 years. reporters visited many companies and found that since May this year, copper processing companies have seen production cuts, which is in sharp contrast to the production scene in full swing in the same period of previous years. Production was forced to slow down and shipments fell significantly, resulting in the inventory of finished products at a high level.

Chief Nonferrous Metals Analyst Che Hongyun: According to tradition, inventories should have declined during the peak consumption season, but we have not seen inventory decline so far. Instead, inventory increases, which shows that the entire supply of copper is still very sufficient.

Qinghai: Copper companies are producing at full capacity. Copper tin mines are in stock.

Copper prices are running at a high level, which puts downstream companies in the face of huge pressure brought by the continuous rise in raw materials. However, upstream raw material manufacturers have ushered in a generous profit. , and major domestic mines have increased their efforts to start construction.

In the electrolysis workshop of Qinghai Copper Industry, the reporter learned that the company's production line is currently at full capacity, and it is busy increasing production after working overtime. The company's head told reporters that the existing production lines are being put into production one after another, and the company's annual output has increased to 100,000 tons.

Then the reporter visited the major domestic copper mining enterprises Western Mining . At the scene, the reporter saw that the vehicles operating were constantly in and out, and they were working three shifts every day, and the operating rate reached the highest level in history. Western Mining has the largest single copper mine in my country, the Yulong Copper Mine, with a reserve of 6.07 million tons, and was put into production ahead of schedule, and the market supply continued to increase.

After this year's Spring Festival, global copper inventory increased by 200,000 tons year-on-year. In previous years, the conventional inventory fell by 200,000-300,000 tons. The rapid rise in copper prices has suppressed downstream processing demand.

Che Hongyun, chief non-ferrous metals analyst at Guotou Anxin Futures Research Institute: The consumption in the spot market is very bad and it is difficult to ship. The import window has been closed since this year. Basically no one needs to import copper, which is difficult for traders to do, reflecting that the rise in copper prices is not supported by fundamentals.

Industry insiders said that the supply of copper is greater than demand at present, but the market copper price has increased instead of falling. At present, the domestic economy has basically returned to the pre-epidemic level, but the copper price is far beyond the price at that time. does not rule out the suspicion of hot money speculating on copper prices with the help of inflation expectations.

Zhejiang Yiwu : The rise in copper prices affects exports

Enterprises explore the domestic market

The rise in copper prices not only brings cost pressure to downstream companies, but also affects the business of related operators in Yiwu International Trade City .

In a bathroom store in Yiwu International Trade City, buyer Alaxan is communicating prices and product information with business owners. Alaxan told reporters that he has been doing foreign trade business in Yiwu for more than ten years. The epidemic last year has had a great impact on his foreign trade business, and the continuous price increase this year has made him complain.

Buyer: Some customers should be able to order more than one million yuan per month, but now they only receive more than two hundred thousand and three hundred thousand yuan. Due to price issues, they do not want to order.

The rise in raw material prices, coupled with the addition of exchange rate, freight and other factors, has led to a significant increase in the prices of some products. buyers are also actively providing advice for customers and saving transportation costs through sea transportation and packaging. For the operator Liu Junming, almost 70% of his bathroom products are made of copper, and the uncertain copper price has put him in great pressure.

Yiwu International Trade City Operator Liu Junming: Since 13, the price increase has fluctuated the most, and the impact of foreign trade is certainly inevitable. For example, the order I received was 70,000 yuan today, and 73,000 yuan the day after tomorrow. It was nearly 4 points, and the purchase loss of raw materials occurred.

In order to relieve the pressure, operators reduce the impact of the rise in raw materials by purchasing raw materials in advance batches and storing raw materials. At the same time, we actively explore the domestic market and increase the proportion of domestic market share from the original 10% to the current 50%. Nowadays, in Yiwu International Trade City, diversified sales channels have also increased product sales to a certain extent and reduced the pressure brought by factors such as rising raw materials.

This article is from CCTV Finance