Recently, the prices of non-ferrous metals such as copper, aluminum, lead, and zinc have fallen sharply. According to analysis, there are four reasons for the decline in the prices of non-ferrous metals.
1. The current international situation has led to a shortage of energy supply and soaring prices, which has pushed up global inflation and greatly interfered with the recovery of overseas economies after the epidemic was lifted.
2. In order to cope with the high level of inflation and accelerate the process of raising interest rates, the Fed not only suppressed metal prices by tightening liquidity but also suppressed demand to a large extent.
3. Domestic demand has been repeatedly affected by the domestic epidemic, and downstream terminal enterprises have weakened their motivation to replenish inventories on dips. The operating rate is under pressure, and demand is not prosperous in peak seasons.
4. The supply shock caused by the conflict between Russia and Ukraine has gradually passed its peak, and with the gradual improvement of overseas epidemics, the factors that previously hindered the production and logistics of bulk commodities have gradually eased, and most bulk commodities have begun to show an obvious supply response. "To make matters worse."
The sharp drop in the price of non-ferrous metals will also have a greater impact on the titanium application market, and the prosperity of the downstream industry will decrease. On the one hand, the application of titanium materials in the civilian market has been greatly reduced, and the price factor has caused some terminal enterprises to continue to use traditional metals such as copper and stainless steel. Since July, the procurement of titanium in the civilian market has shrunk by about 20%. Some companies have to take price reduction measures in order to win orders, which has caused the titanium market to continue to decline. On the other hand, the raw material sponge titanium continues to be at a high level, and the supply of manufacturers recognized in the industry is tight, which also increases the cost of material processing enterprises.
In the period of price fluctuation, enterprises need to do a good job in price risk control and adjustment of related business strategies.
1. Do a good job of fundamental research and price trend research and judgment on the varieties related to the enterprise to lay the foundation for enterprise risk control.
2. Do a good job in hedging work. It is very necessary for the middle and lower reaches of the industry to strictly do full hedging.
3. To adjust inventory and sales strategies, you can avoid the risk of falling prices by adopting methods such as buying on demand according to orders, accelerating inventory turnover, ordering prices earlier, or signing long orders.
