The overall price of non-ferrous metals has been relatively strong recently, and its medium-term copper price is far ahead with a cumulative increase of 15.52% in the first ten days of November. Aidexin believes that the main reasons for the sharp increase in copper prices are as follows: First, copper inventories began to decline significantly on October 24; then Trump was unexpectedly elected president. He advocated proactive fiscal policies and focused on improving infrastructure, raising the market's expectations for growth in demand for industrial metals; since the beginning of this year, prices of other metals have increased significantly in the first ten months, but copper only rose by 6.46% in the first ten months, far behind the increases in other metals. We believe that in an environment where the market is optimistic about black and non-ferrous metals, copper prices have a strong incentive to make up.
The price of raw materials has increased, and various goods have also started to rise in price accordingly. The fluctuations in prices are closely related to costs and supply-demand conditions. If the demand for products exceeds supply, prices may rise; if products remain unsold, prices will begin to fall. This is determined by market conditions and consumer demand.
The rise in raw materials and costs and the rise in copper valves have advantages and disadvantages.
1. A price increase indicates that the currency is devaluing and will promote demand for goods.
The price increase of commodities indicates that the currency has begun to depreciate. If the terminal does not follow up, the cost will increase after the price increase, increasing the operating expenses of the merchant. Therefore, copper valves will have:The saying of buying up but not buying down。In the short term, it will stimulate sales of manufacturers and merchants and stimulate the flow of goods.
2. Price increases increase costs.
The price increase of valves is due tooversupply ofThe price increased under the circumstances of, so the front-line brands have not adjusted.In the short term, demand will increase; in the long run, due to increased costs, small and medium-sized micro valve companies will lack competitiveness due to price increases, which is not conducive to competition with big brands.Therefore, for small and medium-sized enterprises, this round of price increases will play a roleAdjust structure and remove production capacitypurpose.
3. Price increases curb demand, and several companies are happy and others are worried
In the state of valve homogenization competition, valve companies without innovation and price wars will objectively increase the flow of goods in the short term; in the long run, due to rising prices, demand for goods will be further suppressed. Accelerate industrial adjustment. Brands without innovation and competitiveness will become increasingly passive and may eventually be eliminated by the market.
In short, rising valve prices will increase demand in the short term and curb growth in the long run. Accelerate the transformation and upgrading and industrial adjustment of valve companies, which is not necessarily a good thing.
