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Cable enterprise should be far away from financing copper circles

Imports to copper, with the aid of a bank usance l/c, shake the body as part of the domestic enterprises to gain an important means of cheap capital. And these copper also had a exclusive name--" financing copper ", the specific performance of the financing for the purpose to purchase copper material. One of the form is, the enterprise from the bank open l/c, first from the overseas import copper, in home sold to the bank again after payments. Also have enterprise first purchase copper, and then go to the bank do mortgage financing.

For metals as financing tools in the operation of bronze, and more popular. First of all, in the presence of the background of the usance l/c to pay for the issuer is concerned, the unit price of copper higher, can with a copper move more financing volume; Second, the copper resources are scarce and liquidation skills. Because China is now the world's largest country in copper consumption, in great demand, import easily after changed hands out of cash, ratchet tie dowmso as to realize the financing. In addition, the copper resources are scarce, long band to see, copper prices buoyant, also facilitate the operation.

According to understand, since 2008, the financing copper demand in the domestic copper imports in up in the situation than increases year by year. In March 2011, the state administration of foreign exchange on file to strengthen the management of foreign exchange business, had caused the financing copper business once silence, however, with the gradual improvement of terms of trade and the market recently appeared again back signs. Domestic copper imports recovery back,booster cables hidden it is financing copper demand of buoyancy.

And 2011 years ago is different, at present the import of brass already is not only in copper enterprise, a lot of capital operation in organizations and individual has also involved. Copper imports increased led directly to the copper inventory increases, and copper inventory increase and the outside world mistakenly think that China's actual demand increase with bronze. And in fact, from the end of last year on, China copper downstream demand goes down a third.

Financing copper and Renaissance production enterprise by drag

For cable, hardware, electrical home appliances, copper enterprise that, "financing copper" bring is huge cost fluctuations. Because our country is the world's largest importer of copper, so to a great extent, China's copper imports influence international copper price. Chinese demand is often brought to hype, so a lot of "financing copper" to the influence of the copper price is self-evident.

Use import on the enterprise financing of copper, copper prices don't care about the benefits of itself, they even can withstand losses, so often cause international foreign price down there, and cause the domestic price of abnormal fluctuations. The relevant person in charge of Shanghai waigaoqiao free trade zone, said recent copper stocks had nearly 500000 tons, but it's not the whole market demand. Many of the inventory belong to financing copper. From last year to the first quarter of this year, the international prices have rocketed, and break through us $10000 / mt mark. But in recent months, there has been a wave of copper prices falling fast.

Rely on the import of enterprise doesn't care about the internal and external financing copper price and price fluctuations, but for bronze as raw material production enterprise, for example,tow rope it can be hard for them; because of recent falls and the copper price is not lead to their much blood, but pushing up the cost. The domestic copper price compared with the same period last year remains high, enterprise cost pressure have not reduced. Instead, early in the copper boom, a lot of raw materials enterprise reserves of copper, copper prices down now, all down the finished product sales price, enterprise cost instead of pushing up. That is, before the copper price is rising has completely passed on become the production cost, if prices continue to fall, finished product prices could significantly reduce, the enterprise will likely because of the copper price rises and falls and into loss.

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