What kind of impact does the rise of metal raw materials bring to CNC machining factory? In particular, metallic copper belongs to a variety that has a strong linkage with the international market. From March last year to May this year, the domestic copper price soared from around 35,000 yuan per ton to 75,000 yuan per ton.
As the epidemic swept the world last year, and then the world’s major economies continued to expand money supply to stimulate the economy, copper prices soared to the current more than 70,000 yuan, a record high in the past 15 years. Since May this year, copper processing companies have experienced a reduction in output, which is the same period in previous years. The raging production scene is in sharp contrast, production has been forced to slow down, and shipments have dropped significantly, resulting in a high inventory of finished products.
After the Spring Festival this year, global copper inventories increased by 200,000 tons year-on-year. In the same period of the previous year, the conventional inventory fell by 200,000 to 300,000 tons. The rapid increase in copper prices inhibited downstream processing demand. The increase in raw material prices, coupled with the superimposition of exchange rate, freight and other factors, As a result, the prices of some products have increased significantly.
Sellers are also actively making suggestions for customers to save transportation costs through methods such as sub-packaging by sea. In order to relieve pressure, business operators reduce the impact of rising raw materials through bulk purchases and storage of raw materials in advance. At the same time, actively develop domestic and foreign markets and diversify sales channels.