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Copper prices hit a new high, making it difficult for cable manufacturers

Author:SHUNGAL Click: Time:2021-02-26 11:00:04

In November, the rise of Shanghai copper accelerated. On November 30, the rise of Shanghai copper reached 3.72%, the highest during the day was 57790 yuan / ton, closing at 57680 yuan / ton, with a monthly increase of 12.7%, a new high since March 2013, an increase of more than 60% compared with 35300 yuan / ton in the trough period in March this year.


Copper prices soared all the way recently and took off with Chang'e 5. In November, the rise of Shanghai copper accelerated. On November 30, the rise of Shanghai copper reached 3.72%, the highest during the day was 57790 yuan / ton, closing at 57680 yuan / ton, with a monthly increase of 12.7%, a new high since March 2013, an increase of more than 60% compared with 35300 yuan / ton in the trough period in March this year. LME copper price also rose sharply. On November 30, LME copper price once hit US $7692.5/ton, a new high since April 2013. This is 75.99% higher than the price of US $4371 / ton in the first quarter of this year.



What keeps copper prices rising?


Recently, the continuous consumption of copper inventory has also expanded the supply gap, supporting the rise of copper prices. Since mid October, copper inventory has decreased by more than 15% to 153175 tons. Since the new covid-19 epidemic has been raging around the world, South America has become the most serious area of the epidemic. As Chile, the world's largest copper mining area, it has been forced to stop work and downsizing. The workers have also gone on strike. Under the double risk of the epidemic and strike, the mining industry has been obviously affected by the mining industry. Chile's copper output is expected to increase by 0.6% this year, and there will be a shortage of 26000 tons in the copper market this year.


The tension between the United States and Iraq and the weakness of the U.S. manufacturing industry continue to support the strengthening of copper prices. In addition, the development of the new crown vaccine also gave the market optimism and strengthened the market's confidence in economic recovery.


The increasing demand in the field of home appliances and automotive electronics is also one of the reasons for the rise of copper prices.


According to CCTV, the demand for copper is still very strong, which will increase by more than 50% over last year, and the demand for copper will also increase by 50%. The demand side of copper is mainly power, electronics, home appliances, construction, transportation, etc., among which power, electronics, home appliances, construction, transportation, etc., of which power accounts for more than 40%. The domestic demand for copper is strong, and the copper price is still in a state of easy rise and difficult fall. At the same time, some downstream factories also began to prepare goods for the Spring Festival, which also helped the upward trend of copper prices to a certain extent.


The rising copper price makes copper concept stocks stronger one after another, which is a good opportunity for investors. However, some people are happy and others are worried. For connector and cable manufacturers, it is really "Crazy". The connector and cable manufacturers "complain constantly", and the direct call pressure is great! "Not only the rise of raw materials, but also the shortage of goods!", "it's too difficult to be in the middle when the copper price rises and the customer asks for price reduction", "the copper price has been rising and the price dare not report", "the order signed with the customer earlier can only be delivered at a loss with tears", "this copper price does not talk about" copper virtue "


Copper has good ductility, high thermal conductivity and conductivity, so it is an essential raw material in cables, terminals, connectors and other components. The soaring copper price means that manufacturers' costs are also soaring. If the price of products is not raised, there may be a "loss". The sharp rise in copper prices is also likely to cause downstream enterprises to suspend delivery and wait and see.


At this stage, connector and cable manufacturers are consuming the original inventory while facing the high copper price. For this reason, they can only run in with upstream manufacturers and feed back the current situation with downstream end customers, make adjustments in special periods, face and solve problems.

Copper prices hit a new high, making it difficult for cable manufacturers
At this stage, connector and cable manufacturers are consuming the original inventory while facing the high copper price. For this reason, they can only run in with upstream manufacturers and feed bac
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