The impact of rising copper prices on electronic wire manufacturers

Copper prices continued to rise in June 2021. Since 2020, copper prices have increased by more than 50%. From 450,000 RMB/ton in 2020 to 68000 RMB/ton now, it has reached the highest point of copper prices in recent years.

Since the beginning of this year, with the impact of the COVID epidemic, in order to ensure the safety of workers, miners have postponed non-essential activities and reduced labor in the case of continuous output. The non-ferrous metal market is in short supply, resulting in high copper prices. Then Does the rise in copper prices have a big impact on electronic wire manufacturers?

For the rise in copper prices, most electronic wire manufacturers have been affected. The most direct raw materials for the production of electronic wires are rubber and copper wires. The rise in copper prices directly affects the cost of electronic wire production. For electronic wire manufacturers, the sudden increase in cost is undoubtedly a huge pressure.

When the price of copper wire was not high in the past, electronic wire manufacturers generally did not sell high prices. Coupled with the fierce competition among the same industry, the price of electronic wires could not rise according to the normal market conditions. Increasing material costs, but the price cannot rise. Some electronic wire manufacturers are experiencing operational difficulties, while other electronic wire manufacturers are forced to increase their prices. The price increase is about 5-10%.

In summary, copper wire is the main raw material for the production of electronic wires. The rise in copper prices has a very large impact on electronic wire manufacturers. Electronic wire manufacturers can only improve product quality, increase market competitiveness, and avoid malicious price competition. Only by adjusting product pricing in a timely manner can the impact of rising copper prices on the electronic wire industry be mitigated!