crashbandicootnintendo64| Mysteel: Falling orders weaken the willingness to produce refined copper rods, increasing the frequency of phased maintenance
Source: Mysteel electrolytic copper price
RecentlyCrashbandicootnintendo64The main contract of domestic copper in Shanghai once again set a new record high, reaching a new high of 88940 yuan / ton, and the price has risen by 20620 yuan / ton, or 30%, since February 28th.Crashbandicootnintendo64.18%. With the sharp rise in copper prices, the fear of heights of downstream enterprises is also increasing, and the actual consumption of copper bars is once again facing a dilemma. Recently, some refined copper bar enterprises in the market have reported plans to reduce production, overhaul and stop production. For this reason, the Mysteel copper bar team mainly investigated.Crashbandicootnintendo64The recent production situation and follow-up production arrangements of some refined copper rod enterprises are introduced.
Detailed results:
From the Mysteel survey of 28 fine copper rod enterprises (involving an annual capacity of 8.94 million tons) recent production situation and follow-up production arrangements, at present, more than 60% (including maintenance shutdown, production reduction) fine copper rod enterprises have recently reduced, stopped production, this part of the enterprise said that the recent sales, production, pick-up efficiency have declined.
From a specific point of view, due to the further rise in copper prices, most refined copper bar enterprises said that the daily zero order transaction was poor, and the number of new orders could not match the normal output of the enterprise production line, resulting in a serious accumulation of finished product inventory in some enterprises. it also makes this part of refined copper rod enterprises have to temporarily stop production to clear the backlog of finished product inventory, from the recent production performance, the enterprise periodic maintenance frequency has increased significantly. There are also some fine copper bar enterprises whose own basic orders can roughly maintain the continuous operation of the production line, but some enterprises still report that the decline in orders is a common phenomenon, and it is still difficult to execute the actual orders. therefore, the recent implementation of production line rotation maintenance, shut down some idle capacity and other output reduction plans to make corresponding adjustments to production, synchronously cooperate with the enterprise sales progress.
The remaining 40% of the fine copper rod enterprises in the survey enterprises can still maintain normal production operation, and these enterprises are mainly in East China, South China and other regions, in addition to their inherent long-term customers are relatively stable and large, export orders in some areas guarantee the industrial production demand in the region. However, from the feedback of some refined copper bar enterprises, as copper prices repeatedly break new highs, the resistance of the downstream market to high prices is also significantly enhanced. If copper prices continue to maintain a strong performance, it is bound to have a greater impact on the demand market in the later stage, so there are more pessimistic expectations in the later production arrangements.
According to the copper rod enterprises of different sizes, the reduction and suspension of production are mainly concentrated in small and medium-sized refined copper rod enterprises, which account for more than half of Prida. All the small fine copper rod enterprises in the survey sample are in a state of shutdown and overhaul. and its follow-up resumption plan may be delayed. While the overall operation of large and medium-sized fine copper rod enterprises is relatively stable, although some enterprises continue to be in a state of maintenance and shutdown, the same regional market or surrounding provinces have the same type of product brands that can be replaced by downstream customers. the circulation of the supply of this part of enterprises can basically meet the needs of market consumption in the near future, which also leads to the cross-regional circulation of low-cost goods in individual markets.
At present, the production end of refined copper rod is affected by the continuous rise of copper prices, and it is difficult for copper rod consumption to show obvious signs of improvement in the short term, and production reduction is expected to expand, but because copper rod enterprises have not reached previous expectations in the production planning stage for the whole year, taking into account the sharp decline in market orders, it is expected that phased and regional price competition may appear in the follow-up.