Operation situation and main problems of copper enterprises in epidemic stage

Copper enterprises have fully resumed work, the resumption rate is higher than the industry average. Since the outbreak of the epidemic, all the governing units of the Copper Branch have attached great importance to the prevention and control of the epidemic and formulated corresponding prevention and control measures. Most of the governing units and enterprises have not found confirmed cases.

The capital turnover of enterprises and the import of raw materials to Hong Kong are becoming new concerns. Due to the impact of the epidemic, both sides of supply and demand suffered setbacks, market expectations are low, the price of non-ferrous metals is weak, and corporate funds are increasingly tight. On the one hand, the problem of product sales leads to the problem of capital withdrawal; on the other hand, the letter of credit, bill of exchange and loan in the early stage need to be paid, and the bank may have to accept the loan, and both sides squeeze the capital of enterprises. Therefore, the production enterprises have concentrated feedback on this problem recently.

In addition, China is a big importer of copper raw materials, and about 80% of copper raw materials need to be imported. In 2019, China imported more than 21 million tons of copper material, about 1.9 million tons per month. On January 30, 2020, The World Health Organization (WHO) has declared the Novel Coronavirus outbreak in China a PHEIC(Public Health Emergency of International Concern).

Some companies reaction, some international suppliers have declared force majeure, stop hair of imported ore, if the outbreak in the short term can't end or the world health organization (who) to carry on PHEIC (i.e., a public health emergency of international concern) judgment, copper smelting enterprises in China will likely have to face no raw material situation, or heavy discounting purchasing raw material, Increase the difficulty of import raw material negotiations.

Generally speaking, copper industry enterprises are in place in epidemic prevention and control, and large-scale backbone copper enterprises are basically stable in production and operation. With the gradual control of the epidemic and the implementation of a series of policies to promote the resumption of work and production of enterprises, problems such as logistics obstruction and personnel return to work that occurred in the early stage of epidemic control are gradually alleviated. The structural contradictions existing in the copper industry, such as sulfuric acid overcapacity, raw material procurement pressure and so on, have become increasingly prominent during this period.