Shocked copper prices Yiwu hardware companies calmly respond

Since the second half of 2010, prices of iron and zinc and other hardware materials have continued to rise. After the Spring Festival in 2011, the prices of hardware decorative materials and hardware export products on the market have also increased by more than 10%. Recently, domestic and foreign copper prices continued to decline, I thought the city's hardware companies can take the opportunity to "take a breather", hardware prices can also homeopathic, but I visited a number of hardware companies in the city and found that businesses face the short-term decline in the price of copper The news seemed very "cool."

According to the Shanghai Nonferrous Metals Network, from April 19 to April 26, the spot copper price in Shanghai rose from the average price of 19 days to 70,600 yuan/ton, and climbed to RMB 71,825/ton on the 22nd. On April 27, the average spot copper price in Shanghai was 70,650 yuan/ton, down by 1,175 yuan/ton.

The price of copper temporarily fell back.

Japan is the main non-ferrous metal consumer, and metals such as copper are mainly imported. In 2010, Japan's consumption of copper accounted for 5.4% of the world's total. Due to the earthquake and tsunami in Japan, many Japanese automakers and motor companies were forced to stop production. It can be predicted that Japan’s copper imports will drop sharply in the short term. Affected by this, domestic and foreign copper prices will fluctuate.

The temporary drop in copper prices is good news for Yiwu hardware and plumbing companies. “Plumbing materials account for about 80% of the raw materials in the plumbing industry, plumbing industry affected by the price of copper is the most obvious.” Cai Yi, a city plumbing enterprise business manager, said that the decline in copper prices in recent days has slightly eased the company’s cost pressures, but with 2010 Compared with the price of 53,000 yuan/ton in June, the current copper price is still at a high level, and the company still bears greater cost pressure.

As for the trend of copper prices, business operators have their own views. Affected by strong earthquakes, short-term domestic copper prices may decline, but post-disaster reconstruction and replacement demand for durable products (such as automobiles and household appliances) will make Japan’s copper, aluminum, etc. Demand for non-ferrous metals has soared. Due to the recent increase in demand for copper in Japan, international copper prices will reverse the decline. As domestic copper prices are closely linked with international copper prices, once the international copper price rises, domestic copper prices will also rise.

Copper price shocks, hardware, plumbing companies will take the opportunity to sell goods? The city's hardware business owner admitted frankly that the recent copper price shocks, but how the latter trend, most companies have no end in mind, coupled with the current price of copper is still higher than in 2010, a large number The stocks will occupy a large amount of liquidity in the company, so most plumbing and hardware companies are still waiting and watching, and are not in a hurry to sell.

Product prices, do not drop!

Ye Congjun, who has done hardware accessories business for more than 10 years, said that in the past, the prices of most home improvement hardware products will not be actively reduced in the next two months. However, starting from May, due to the decline in market demand, the prices of home hardware products such as locks and doors may drop slightly. People who have the decorating needs in their homes may purchase the necessary hardware materials, which may be a good choice.

Wu Xianfa, head of Yiwu Exploiting Hardware Co., Ltd., also stated that if the price of copper continues to fall, the price of the product will be lowered accordingly after two months, and no adjustment will be made at present. Wu Xianfa said that now the pressure on enterprises is not just a cost increase. “When the price of copper rises, the company’s stock of raw materials is sufficient to meet a certain period of time. Now that the price of copper has fallen, but the purchase price of raw materials of the company is high, so it is necessary to wait until the batch of raw materials is finished. Will look at the situation to adjust the price.” In addition, Wu Xianfa also mentioned that once raised the price of 10% of the product, it is difficult to come back. Businesses suffer from problems such as power curtailment, which leads to a reduction in output and a natural increase in prices; labor costs and logistics costs are also increasing. Wu Xianfa said: "So before the price increase has been completely passed on to the cost of production, if the raw material does not drop sharply, the possibility of a downward price adjustment by the business is not great."

Domestic market, good!

Before 2010, Yiwu City Development Hardware Co., Ltd.'s ratio of domestic and foreign sales was 1:9. Wu Xianfa said that the hardware tools of Yiwu are mainly exported to Middle East and Africa, and the international situation is not stable and directly reduces the export orders of foreign trade. "Now, foreign purchases are very cautious. We have heard that we have to raise prices and we are busy with picking up goods. We have heard that prices have dropped and we have been busy buying low prices. Now we are mostly in a wait-and-see mode." Wu Xianfa said that buyers now choose to "sell one point," Take a little "into the volume of goods is not willing to" restraint "in the price ups and downs.