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Overcapaciteit wijst op winstcompressie van Brass Belt Enterprises

With the rapid growth of domestic demand for Brass Belt and the bull market of copper price, the wealth effect of brass belt manufacturers is very obvious, and brass belt manufacturers in Zhejiang, Anhui, Jiangsu and other regions are blooming everywhere. Large scale brass belt manufacturers have also opened a competition around production scale, and new production capacity projects have been launched. In addition, some large-scale brass belt manufacturers also expand their production capacity through listing. For example, Ningbo Xingye Copper Co., Ltd. successfully landed on the Hong Kong Stock Exchange in December 2007, and Jingcheng Copper Co., Ltd. successfully listed on the Shenzhen Stock Exchange in September 2007. 2007 is the peak period of Brass Belt industry development. However, in the next few years, under the impact of the financial crisis, European debt crisis and the pressure of falling demand at home and abroad, the brass belt industry gradually entered a state of oversupply. In addition to weak external market demand, domestic demand is also declining due to high domestic inflation. Therefore, the electronic factory and hardware factory of downstream enterprises are highly sensitive to the price of copper strip. The high copper price directly weakens the enthusiasm of the electronic factory and the hardware factory of the downstream enterprises. We have learned that in the second half of last year, the weak economic growth in Europe and the United States has shifted to domestic processing enterprises. Domestic copper enterprises need to face a series of problems, such as the continuous shortage of operating rate, the accumulation of copper inventory, and the fracture of capital chain. Due to the insufficient operating rate, some small and medium-sized copper strip enterprises operate with the mentality of "win when lose less", and the processing fee of copper strip is constantly reduced. For this year's work, we will focus on comprehensively improving the basic management level of enterprises, reducing production costs by accelerating technological innovation, strengthening risk control, especially guarding against the risks of various subjective speculative operations, and strictly controlling the inventory of copper materials and raw materials
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