International Copper Price Breaks Ten Thousand U.S. Dollar Hardware Decoration Materials Prices Up 10%

After a few days of completion, the international copper price successfully broke through the $10,000/ton mark and drove the domestic copper price to climb again. Yesterday, the domestic spot copper price reached 72,500 yuan/ton, and the ** copper price was 74,320 yuan/ton, both more than half higher than half a year ago.

In fact, not only copper but also the prices of iron and zinc and other hardware materials have continued to rise since the second half of 2010. In the market, the prices of hardware decorative materials and hardware export products also rose by more than 10%. Businesses expect that if the price of copper and other hardware materials does not drop back, the next round of price increases may be household appliances such as air conditioners and refrigerators.

Copper prices rose to the highest level in six months

“Since the opening of the market, raw material prices have risen by 300 yuan per ton.” Wang’s hardware lock dealer is a hardware business owner of the Second District of Yiwu International Trade City. He said that the brass needed to make brass locks has risen to 4,200 yuan/ton, compared with 3,500 yuan/ton in the same period of 2010, and only 3,900 yuan/ton before the Spring Festival.

Brass is not pure copper. It is an alloy of copper and zinc. The market price of refined copper is higher. According to information released by the copper industry portal “Bronze House”, the spot copper price on the market reached 72,500 yuan/ton yesterday, up by 1,250 yuan/ton from the previous day. In the summer of 2010, the spot price of refined copper in the market was 50,000 yuan/ton.

Among all types of metals, the increase in copper is also most noticeable. Shanghai Stock Exchange showed that the main copper contract of 1105 yesterday rose 2020 yuan / ton to 74,320 yuan, an increase of 2.79%. **Analysts said that this round of copper bull market started in June 2010, when the copper main contract was only 49,000 yuan / ton, and then began a rapid rise before the Spring Festival rose to 71,000 yuan / ton in the vicinity, the highest post-holiday climb to 76,950 yuan /Ton. The trend of the spot market is generally two weeks behind the **, but the overall market is about the same.

In the international market, copper prices continued to rise to new highs during the Spring Festival, reaching a maximum of US$10,190 per ton. However, with the deterioration of the situation in North Africa and the Middle East, the price of copper has quickly recovered in the short term, and then returned to above 9500 U.S. dollars per ton.

Hardware decoration building materials prices rise

Since the second half of 2010, not only copper prices have continued to rise, iron and zinc and other metal materials have also been in the storm of rising prices. On the market, the decoration industry is undoubtedly the most directly affected industry in terms of hardware material prices.

"This year, various materials have risen, and copper is the most powerful." The Jijun hardware decoration materials firm on Yiwu Xicheng Road sells all kinds of hardware accessories. Most of the customers come from places like Yiwu, Dongyang and Pujiang. Ye Junjun, head of the store, said that for a common copper lock installed in the bedroom door, the wholesale price in 2010 was about RMB 72/bar, and this year it rose to RMB 80/bar. The reason for the price increase is simple because the ex-factory price has gone up. The other hardware accessories of this hardware store have also risen to varying degrees. They have risen by a few cents and have risen by tens of yuan.

The author learned from a number of material suppliers that it is also an ordinary renovated house of 100 square meters. Before the year, locks, door handles and other hardware and wires were budgeted for four or five thousand yuan, but after the year, the actual purchase price on the hardware market was used. It will be five or six thousand dollars.

In the International Trade City, the situation is slightly different. Due to the main export, in the face of raw material price increases, some business households have chosen to insist and some have chosen to raise prices, and the price increase rate is about 10%.

Wang's hardware lock industry firm is located on the second floor of F District, and mainly sells all kinds of medium and high-grade copper locks. Yang Qianjia said that rising raw material prices and rising wages are the biggest cost pressure faced by SMEs this year. If you do not raise prices, not only do orders, companies may also lose money. However, in the price increase, he did not simply increase the price, but through negotiations to obtain customer understanding and guarantee a reasonable profit. At the time of receiving an order, he will usually explain it clearly to the customer. The price reported to the customer is mainly based on the actual price of the raw material.

There are also some business households who choose to bite their teeth and insist for a while. "If the price rises, the customer runs away." Shen Wenfa, who also operates the lock, said that because some products are stocked in the factory, the pressure after the raw material price increases can withstand another period of time. He admits that the reason why he does not increase prices is that he is afraid that customers who have always been sensitive to quotes are not willing to place orders because of their high prices.

Decoration hardware early summer or price increases expected to increase air conditioning prices

There was a brief correction in copper prices, but they went up again in the past two days. Many analysts believe that copper prices are more likely to rise further. Will the price of related hardware products rise?

Ye Congjun, who has done hardware accessories business for more than 10 years, said that in the past, the prices of most home improvement hardware products will continue to rise in the next two months. However, starting from May, due to the fall in market demand, the prices of hardware products such as locks and doors will decline. People with decoration needs are good choices for purchasing hardware materials in May and June.

In addition, as the price of copper and other raw materials continues to rise, the distributors of home appliances such as air conditioners, refrigerators, and washing machines in shopping malls are also facing price pressures.

It is reported that compared with the beginning of 2009, the cost of a 1 air conditioner will increase by 250 yuan, and the cost of 2 air conditioners will increase by about 600 yuan. In the market, expectations for price increases are also getting stronger. Some air-conditioning dealers revealed that although the manufacturers did not formally increase prices, they have received verbal notices, an increase of 5% to 10%. Earlier media reported that Haier will raise the price of refrigerators and washing machines, which are the best-selling model products, by about 5%. Some joint venture ice-wash brands will gradually raise the terminal retail prices of major electrical appliances stores.

However, dealers said that because there is sufficient stock now, the price increase plan will not be implemented immediately.