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Copper Tube Information

Company dynamics

5.70-8 tube with brass stem

author:MF manufacturerstime:2022-03-14 16:00:51

core content


Copper rod processing in the primary consumption field on the copper industry chain should be the largest industry in many copper.,Overcapacular crisis,Low utilization,Scrap copper alternative effect,Geographical competition,Processing fee,The level of profit is not high,Fund occupation,Cost loss,Pricing mode is not uniform,Cit price trading and set of insurance,All such varies will be the development of the future copper rod industry,The industry's clearing point will gradually appear in the cycle of this round of copper prices.,Perhaps the current production difficulties faced by this high copper price are catalysts for industry upgrades.。

China's copper industry initial downstream consumption,Copper rods account for proportion40%above,Is the most domain of copper demand,After decades of development,The competition in China's copper industry is increasing,Regional characteristics。Especially in the current copper price,After the high level of history,Give the downstream processing enterprise cost larger,Risk increase。This article tries to analyze the dilemma faced by the copper industry,Analyze the possible clear way of future copper rod industry。


Dilemma:Copper rod overcapacity,Waste copper is obvious


Copper rod overcapacity has been existent,The alternative effect of scrap copper accelerates this change。First we see the changes in domestic copper rod production from the perspective of supply.,At present, the oxygen-processed oxygen rod and continuous casting and low oxygen pole produced by copper rods produced by fine copper.,The yield of low oxygen rod is much higher than the oxygen bar,And low oxygen rods have obvious scrap copper alternative effects,At present, the ratio of scrap copper is probably30%about,The copper rod industry has been expanded after more than ten years of production capacity expansion.,Currently completely enters a state of overcapacity,From the yield data in the figure below, it can be seen that the capacity of copper rod expansion after three years has been up to1500Tens of thousands tons,But the actual copper rod yield is maintained80010,000 tons,The capacity utilization also presents a trend of annual decline.,Over the years, it is maintained at 60% to 70%.。From change,2015After the year, the copper rod capacity expansion speed begins to slow down.,Enter a stationary period,However, the real out of the industry has not yet arrived.。


5.70-8 tube with brass stem

China copper bond production capacity and production


The advantage of the scrapper rod is reflected at the cost,Quality can also reach downstream requirements for the resistance rate,When the price is rising to a certain degree,The demand for scrap copper will increase significantly,The figure below shows the exquisite disadvantage of the non-tax.,Can see the climb of copper prices,Scrap copper advantage of exquisible waste difference,We will be deducted according to the scrapbook points.,The current exquisite spread has broken through2400Yuan/Ton border,And according to the previous2000The above spread will obviously boost the waste copper demand,This spread has maintained a considerable period of time,Superimposed imported copper policy reform,It can be seen that the imported scrap copper has a significant increase.,Domestic scrap copper also has increased demand,The starting rate of the scrapper rod begins not attributive。


5.70-8 tube with brass stem

Exquisite(Excluding tax)


5.70-8 tube with brass stem

Bronze rod and scrapper rod start rate


Dilemma:Processing long-term pressure,Regional restriction


The dilemma facing the copper processed enterprises is the processing fee.,And there is a vicious competition,Copper corporate profit is the only source of processing,The determination of the processing fee will not be significantly adjusted with the fluctuation of copper prices,You can see the changes in the process of processing from the following figure.,Most time processing costs400-600Yuan/Ton interval,Copper rod capacity is difficult to come out,Competition in copper corporate processing fee,From the changing changes,There is a negative relationship between copper rod processing costs and exquisite disadvantages.,Be in500The nearby processing costs correspond to the high precautions,It is also reasonable to explain this change from the perspective of production enterprises.,Copper cost advantage,And downstream with cable orders,After the scrapper rod guarantees certain quality,And the cost is lowered,Give the company to give more processing conventions to exchange the amount of order,Under the trend of subsequent waste copper,Competition of copper rod processing will further exacerbate,Copper corporate profits face long-term pressure。


5.70-8 tube with brass stem(5.70-8 tube with brass stem)China copper rod processing fee average


5.70-8 tube with brass stem(5.70-8 tube with brass stem)Fine price difference seasonal map(Excluding tax)


Because the processing fee is not high,And the required funds are large,Enterprises are more sensitive to various costs in production,One of the most prominent goods costs,This is also the main cause of current copper corporate regional concentration,The Yangtze River Delta area is the main copper processed concentration,Bronze company headed by Jiangsu Province32%,Zhejiang Province accounting9%,Anhui proportion9%,Secondly in the Pearl River Delta Region,Centralized copper processing enterprises in the Bohai area。Another company to control logistics costs400 Yuan/ Tonne,The raw material procurement and sales areas are limited,Source is difficult to flow across region,It is difficult to cover the cost of transportation and processing costs.,In such a development circle,There is no monopoly oligarchy market,Industry competition plus,Enterprises either find cost advantages from process links and materials,Either look for high-end routes,Either look for an exit path,But overcapacity,The processing fee is still difficult to break through the surrounding city。


5.70-8 tube with brass stem

Negative copper rod regional characteristics


Striking:High copper price high loss,Capital pressure,

Set of difficulty


With the price of copper climbed to 70,000,And the copper rod processing fee is still in the low position.,Production costs of fine copper processed into copper rods are increasing,The loss in the production process is gradually increased with the increase of price prices.,Therefore, the high-copper price is high loss and compresses the profit of most copper processes.,And the copper industry is also a fund-intensive industry,The required flow funds,High funding financial cost,If there is no sufficient cash flow and enough time account,The average number of companies in the company will increase further,Very difficult20The capital turnover strength within the day。

(5.70-8 tube with brass stem)

Copper price enters high high fluctuations,Enterprise dot price transactions and balance increases difficulty,Although copper rod companies sometimes use raw materials procurement with copper rods to sell real-time price rods,Sometimes through risk control methods such as hedges,However, due to the procurement pricing model and sales pricing model cannot be part,For the fine copper processing enterprises who have a demand order to buy.,Strong performance of copper price,Increased spectatation,The price of disk is higher than the spot price,Not conducive to enterprises for raw material procurement,Sometimes I have to pay a certain processing fee to make up for the loss of the price.。


5.70-8 tube with brass stem

Basal change

(5.70-8 tube with brass stem)

Revelation


Copper rod processing in the primary consumption field on the copper industry chain should be the largest industry in many copper.,Overcapacular crisis,Low utilization,Scrap copper alternative effect,Geographical competition,Processing fee,The level of profit is not high,Fund occupation,Cost loss,Pricing mode is not uniform,Cit price trading and set of insurance,All such varies will be the development of the future copper rod industry,The industry's clearing point will gradually appear in the cycle of this round of copper prices.,Perhaps the current production difficulties faced by this high copper price are catalysts for industry upgrades.。


As a producer's behavior,Attack,At present, import processing equipment has a trend of domestic alternatives.,Process upgrade reduces cost;The price advantage of the scrap copper price of the raw material is reflected,With the premise of ensuring quality, there is also a certain cost advantage.,At present, the trend of exquisite waste disputes and waste copper,This alternative effect will be more obvious。Consumer end,China's traditional cable demand increments will not be too large,The increase in the increase in the lacquered wire is also difficult to form a larger copper rod,Producers face two modes of product quality upgrade or find export paths,And these two types of consumption-based development direction need a certain cost investment,So size companies,The strong financial strength, or will stand out。