Recently, many chemical raw materials have ushered in price surges, including copper and plastics in the cable industry, which have experienced substantial price growth. As we all know, the cable industry is a typical industry of heavy materials and light industry, and raw materials occupy the line The proportion of cable costs is very large, especially copper, which can account for 60% of the cost, which can be said to have a huge impact. The recent rise in materials has also brought unprecedented challenges to downstream cable manufacturers.
Due to the impact of the epidemic, since February this year, copper has ushered in a round of crazy growth, which has exceeded the 70,000 yuan per ton mark, setting a record for nearly ten years.
New highs, and in the face of the rising cost of materials, how do cable companies survive this crisis?
The crazy growth of copper this time has a huge impact on the cable industry, which will also directly affect industries that use a lot of cables, including electricity, home appliances, construction, new energy and other industries, which will be affected by the fluctuations in the cable industry.
The price fluctuations of raw materials such as copper also make the price of cables almost every day, which is very unstable, which makes it difficult for cable companies to make reasonable predictions. Whether it is hoarding or waiting and watching, manufacturers are at a loss, how to arrange reasonable arrangements Inventory, cost and market planning have become the most difficult problems for cable companies to break through. Because copper prices change almost every day, manufacturers have to re-sign contracts with many customers, and directly void and re-negotiate contracts without the transfer of the amount. This is also the safest one that most cable companies have made according to the existing situation. The solution: go wherever you go.
When signing contracts with customers, cable manufacturers will indicate that the unit price will be adjusted accordingly according to the floating ratio of copper prices, but even so, it is difficult for cable manufacturers to maintain stable revenue as in the past, and profits are still compressed. In the face of this situation, cable companies can only grit their teeth and move on.
