Copper Prices Have Skyrocketed, Will Price Increases For Cable Terminals Become Inevitable?

Since February, copper prices have been rising like a rocket. On February 25, the main contract of Shanghai copper rose nearly 4% after opening, reaching 70,000 yuan/ton, the first time since August 2011. The sharp rise in international copper prices has a direct impact on copper foil. The higher price of copper foil has also made downstream copper foil substrate (CCL) factories and printed circuit board (PCB) factories overwhelmed. Copper is also an indispensable component material for cable lugs conductive connection and improving the cost performance of wire lugs. The surge in copper prices will inevitably affect the price of electrical lugs.

Securities agency: Copper prices are still expected to continue to strengthen in the first half of the year

According to the Shanghai Securities News, due to strong downstream demand, the accumulation of copper products before and after the Spring Festival in previous years did not occur this year.

According to Baichuan Yingfu's research, as domestic downstream factories resume work one after another, there is still an expectation of purchasing and stocking, and the market demand situation is expected to improve. Although domestic smelters have a high backlog of inventory after the long Spring Festival holiday, the current social visible inventory is at a historical low, and manufacturers are bullish. From the supply side, the main copper producing areas of Chile and Peru are affected by the epidemic, and the production and shipment situation is not optimistic.

Data recently released by the United States Geological Survey show that global copper production is expected to be 20 million tons in 2020, a decrease of 2% from 20.4 million tons in 2019. The USGS said that the main reason for the year-on-year decline in global copper production was the epidemic prevention and blockade measures implemented in April and May last year, which seriously affected the production of Peru, the second largest copper producer.

Guomao Futures believes that copper prices are still expected to continue to strengthen in the first half of the year, and there are the following positive factors:

First, the US $1.9 trillion stimulus has made positive progress;

Second, the global epidemic has improved;

Third, the inventory of metal varieties such as copper is at a relatively low level, and the second quarter is the peak season for basic metal consumption, which is expected to further drive inventory decline;

Fourth, in recent years, countries have introduced carbon peak timetables, and the construction of equipment and facilities such as new energy vehicles, solar energy, and wind energy is expected to further drive the consumption of basic metals such as copper and aluminum.

terminal lugs is one of the most widely used electronic components, widely used in computers, telecommunications, network communications, industrial electronics, transportation, aerospace, medical equipment and automotive industries. The general trend of the development of electronicization and informatization today has also created a broad space for the development of the copper lugs connector industry.

Aluminum Cable Lug usually consists of insulating parts (plastics such as PA/PC/PBT), conductive parts (copper), wire frame/shrapnel (copper/steel), and screws (iron/copper). From the raw materials, it can be seen that except for insulating parts, the rest require metal hardware materials. The increase in metal prices will inevitably have a greater impact on the cost of Compression Cable Lug. Youle Terminals has always used copper as a conductive material. Based on the surge in copper prices this time, will the price of terminal blocks be adjusted significantly? Wait and see!