Fongming Cable: The Russian-Ukrainian conflict, the rise of nickel and copper, how much does it affect the high temperature cable

Views: 0     Author: Site Editor     Publish Time: 2022-03-09      Origin: Site

U.S. and European sanctions against Russia, rising energy costs, the impact on copper, zinc and nickel cannot be ignored

According to ICSG statistics, Russia's refined copper production and export in 2020 will be 1.04 million tons and 740,000 tons, accounting for 4.2% and 8.9% of the world's total, making Russia the world's fifth largest copper producer and third largest exporter. Industry analysts believe that the impact of the Russian-Ukrainian impact on Russia's own copper production and exports will not be very large. The current low inventory situation in the copper market and the demand for imported copper in Europe and the United States do not support the sanctions imposed by Europe and the United States on Russian copper companies.

The impact of the Russian-Ukrainian conflict on the copper market mainly comes from two aspects. One is that rising energy costs dampen the enthusiasm of local copper companies in Europe to start construction, and the other is that inflationary pressures increase the demand for copper to preserve value. Considering that Russia's copper consumption is small and has been sanctioned for a long time, it is difficult for the market's risk aversion to continue to rise, and copper prices will return to their own fundamentals; the current domestic real estate relaxation signals are frequent and infrastructure investment is expected to accelerate. , the price of copper is easy to rise and difficult to fall.

The Russian-Ukrainian conflict will also have a non-negligible impact on the supply of nickel metal. Russia is rich in nickel ore resources, with nickel ore production accounting for 11.2% of the world’s total, and Russia’s nickel exports to Europe accounting for about 40%. In 2021, my country’s imports of refined nickel from Russia will account for 20% of total imports.

No matter how the international situation changes, we will unswervingly face it with our customers and friends. Yangzhou Fongming Cable Factory, the high temperature wire and cable expert around you.

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