**Abstract**
As widely recognized, copper serves as a key indicator for assessing global economic health. Recently, the market has been volatile, with fluctuations resembling an unpredictable weather pattern. As the second quarter draws to a close, the copper market is once again hitting new lows, placing additional pressure on copper companies.
"In early June, we saw a significant drop in orders," said a senior executive at a copper manufacturing company. "With the end of the second quarter approaching, most orders were concentrated in May, and now there's a noticeable decline in incoming orders. While we expect some improvement in the next quarter, the current bearish sentiment in the market, driven by weak copper prices, is causing both order volumes and profits to shrink," he added.
According to the Fubao Copper Research Group’s June report, the production levels of mid-June copper companies fell by approximately 4% compared to May, highlighting the negative impact of seasonal demand and price volatility on downstream industries.
The scrap copper market is also struggling. During a recent field visit, many waste recycling factories in Jiangsu were operating at a standstill, with little to no vehicle traffic or transactions throughout the day. Some traders reported that even a small profit margin of 100-200 yuan is now considered a success, while others are facing losses. Meanwhile, processing fees for copper companies have also declined.
"The copper price has dropped significantly," said Mr. Xie, a manager at a copper rod factory. "Our processing fees are now about 200 yuan lower than the same period last year."
With copper prices continuing to fall, downstream enterprises are finding themselves in a tough position. On one hand, low prices are eroding margins, and on the other, they are struggling with tight cash flow due to inventory buildup. Additionally, with banks tightening their copper financing policies, small businesses facing loan difficulties are finding it even harder to secure financial support. Without sufficient capital, these companies are unable to move forward.
Currently, the broader financial market is experiencing liquidity shortages. Although the central bank has provided temporary relief to some institutions, it hasn’t fully addressed the underlying concerns about capital flow. Moreover, with the end of the quarter, the banking sector is preoccupied with quarterly reporting, and the central bank has not taken any major actions before July. As a result, interbank debt pressures remain high.
Overall, the sluggish downstream transactions reflect weak demand from real-world entities, and the survival environment for small and medium-sized copper companies remains challenging in the short term. These conditions could affect future supply in the copper consumer market. From a technical perspective, the copper market still faces strong resistance, and it remains in a bearish phase. While there may be some minor positive signs, they are unlikely to reverse the overall downward trend.
Three Way Valve Balls,Stainless Steel Three Way Valve Spheres,Steel Three Way Valve Spheres,Stainless Three Way Valve Spheres
WENZHOU ZHENHONG VALVE BALL CO., LTD , https://www.zhvalveball.com