News summary
Shanghai copper's main contract sets a record highcryptoeducationgames, reaching 88940 yuan/ton, an increase of 30cryptoeducationgames.18%。Mysteel research shows that more than 60% of refined copper rod companies have reduced production or stopped production. The demand market is affected by high copper prices, and the outlook for later production is pessimistic.
Newsletter text
[The main contract price of Shanghai copper soared to a record high, hitting 88940 yuan/ton]
Recently, the domestic Shanghai copper futures market price has continued to rise, exceeding the price since February 28.cryptoeducationgamesThe cumulative increase reached 30cryptoeducationgames.18%, the latest high is 88940 yuan/ton. The rapid rise in copper prices has increased the purchase costs of downstream companies and affected the production and sales of refined copper rod companies. Some companies plan to take measures to reduce production or suspend production to cope with market changes.
[Mysteel conducted a survey on refined copper rod companies, and more than 60% of them suffered setbacks in production]
According to Mysteel research, among the 28 refined copper rod companies with an annual production capacity of 8.94 million tons, more than 60% have recently faced the dilemma of reducing production or stopping production. These companies generally report a decline in sales, production and delivery efficiency, and as copper prices continue to rise, orders from downstream companies have decreased, resulting in serious accumulation of finished products inventory. Some companies have to carry out phased maintenance and shut down some idle production capacity.
[Small and medium-sized refined copper rod enterprises have been severely affected, and large and medium-sized enterprises are relatively stable]
Mysteel research shows that small and medium-sized refined copper rod enterprises have been significantly affected. Their small and medium-sized enterprises have fully entered a state of production suspension and maintenance, and the resumption of production plans may be postponed. On the contrary, the operations of large and medium-sized refined copper rod enterprises in the region are more stable. Although some enterprises are also facing the situation of maintenance and production suspension, there are enough alternative brand products in the market to meet current consumer demand and at the same time promote the cross-regional circulation of low-cost goods in certain markets.
[Copper rod consumption is difficult to improve in the short term, and the market or current price competition]
In view of the high copper prices, it is difficult to significantly improve copper rod consumption in the short term. Mysteel predicts that the annual production plan of copper rod companies has not yet reached expectations. Combined with the significant reduction in orders on the market, there may be more phased and regional price competition in the future, further affecting the development of the copper rod market.