News summary

The main domestic copper contract in Shanghai sets a new historical highps5crashteamracing, currently touching 88940 yuan/tonps5crashteamracing, up 30% from February 28ps5crashteamracing.18%。Soaring copper prices have prompted more than 60% of refined copper rod companies to reduce production or stop production. Due to high costs, orders have been reduced and inventory accumulation has been accumulated, and market consumption has been sluggish.

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Shanghai copper prices hit record highs repeatedly, and refined copper rod companies are facing pressure to reduce production

The main domestic copper contract in Shanghai hit a record high, with the latest price reaching 88940 yuan/ton, a cumulative increase of 30% since February 28ps5crashteamracing.18%。Soaring copper prices have caused downstream companies to be afraid of high prices. Consumption of copper rods is in trouble. Some refined copper rod companies in the market plan to reduce production or maintain production.

Mysteel conducted a survey on the production situation of 28 refined copper rod companies. The results showed that more than 60% of the companies have recently reduced production or stopped production, and sales and production efficiency have declined.

Copper prices continue to rise. Most companies perform poorly in intraday zero-order transactions. New orders cannot keep up with the output of the production line. Some companies face a backlog of finished products inventory, which has resulted in having to suspend production and clean up. At the same time, the frequency of phased maintenance of enterprises has increased, and some production capacity has decreased.

Refining copper rod companies in East and South China still maintain normal production relying on long orders and export orders, but concerns about continued high prices are also rising.

Small and medium-sized refined copper rod enterprises have seriously reduced production or stopped production, accounting for more than half of the total. Although large and medium-sized refined copper rod enterprises have also experienced maintenance and production stoppage, their overall operation is relatively stable.

Under the influence of higher copper prices, copper rod consumption is unlikely to improve significantly in the short term, and production cuts are expected to expand. Considering that the full-year production plan did not meet expectations, price competition may occur in the future.