Copper price breaks down What is the current status of copper row?

Since entering the second quarter, copper prices broke down, some copper enterprises have some raw material inventory when copper prices are high, so that it is subject to greater cost pressure, in the face of weak demand, the presence of copper enterprises contracted supply to reduce capital pressure. Due to the real estate industry has not yet significantly improved, the traditional copper row downstream products such as distribution cabinets, transformers and other weak demand, most downstream enterprises choose to just replenish the warehouse. According to SMM, the previous copper row enterprises due to the epidemic unfinished projects in this year to complete, orders increased, but along with the end of the old project, the new project failed to increase the situation, the copper row market again into a deadlock. In the face of a weak market for both supply and demand, most copper row enterprises choose to retain their own customers and maintain long-term orders for immediate needs.

In addition, 2022 benefited from the development of the new energy vehicle charging pile market copper row enterprises, this year failed to continue to maintain growth momentum, mainly due to new energy vehicles than last year's increase in new orders, the end of last year's rising market. For the copper row market, most enterprises rely on the traditional demand for high-voltage and low-voltage complete sets of equipment, closely related to the economic cycle and the development of the real estate industry, in the context of insufficient domestic demand, most copper row enterprises start low to maintain the survival of the stock of customers. At present, the new energy market is still at the forefront of industry development, but due to technical problems, copper enterprises involved in the market proportion is low, and thus a large number of copper enterprises have not been able to profit from it.

To sum up, the recent low copper price shock makes processing enterprises fear of falling sentiment, coupled with the lack of demand, copper row market orders are more limited. Traditional industry market has been saturated, new energy market demand is still not a lot of development, the first half of 2023 copper row market performance is not good, it is difficult to appear in the short term obvious upturn.