What are the factors involved in the price of copper pipes?
Winland Metal supplies high-quality seamless copper pipes , which are widely used in water supply pipes , air conditioning, refrigeration and heating , medical treatment , construction, solar energy and other industries. Many customers have such a question: how exactly is the price of copper pipe constituted?
Generally speaking, the price quoted by Winland Metal to customers mainly includes the following elements:
- Spot copper price
- Copper tube processing fee
- Copper tube packaging fee
- Taxes
- Domestic transportation fee
- Port operating expenses
- shipping fee
- insurance
Spot copper price
LME (London Metal Exchange), the London Metal Exchange, is the world's largest non-ferrous metal exchange. It was established in 1876 and is an indirect wholly-owned subsidiary of the Hong Kong Stock Exchange. The trading varieties include copper, aluminum, lead, zinc, nickel and aluminum alloys. The prices and inventory of the exchange have an important influence on the production and sales of non-ferrous metals worldwide.
Specific to the copper product, LME is the world's largest copper futures trading market. Copper futures trading began in 1877. There are two types of copper trading:
- Cathode copper: Grade A copper
- Copper rod: The specification standard is A grade copper weighing between 110-125 kg
The price of spot copper is the main component of the price of copper pipes . Since the LME copper price has such a large influence, can Winland Metal’s copper pipes be quoted on this basis? The answer is yes, but considering that Winland Metal’s copper pipes are produced in China, and their copper raw materials are purchased from mainland China, we are customary to calculate the price of copper pipes based on the domestic RMB copper price on the day of quotation.
It can be seen from the figure above that China's domestic copper prices and LME copper prices are very similar. This is because in the context of globalization, changes in China's copper prices will naturally be affected by international copper prices. However, due to the constant changes in China's huge manufacturing demand and the influence of various factors such as policies, futures operations, exchange rates, and supply, China's copper raw material prices are often higher than international copper prices.
| years | Global refined copper production | Global consumption of refined copper |
|---|---|---|
| 2010 | 1898.5 | 1912.9 |
| 2011 | 1959.6 | 1,969.7 |
| 2012 | 2012.8 | 2,038.6 |
| 2013 | 2,096.2 | 2,126.7 |
| 2014 | 2249 | 2288.6 |
| 2015 | 2281.1 | 2287.8 |
| 2016 | 2,340.6 | 2,346.1 |
| 2017 | 2352.3 | 2378.9 |
| 2018 | 2387.6 | 2426.3 |
| 2019 | 2423.8 | 2474.8 |
| 2020 | 2,460.6 | 2511.95 |
Copper tube processing fee
This is the integration of various expenses incurred in the production of copper pipes, such as electricity, water, taxes, labor costs, and machine depreciation. Hard copper pipes and soft copper pipes are different in the production process, so the prices are also different. The different prices of large-diameter copper tubes (outer diameter 54mm or more), common specifications copper tubes and copper capillary tubes (outer diameter less than 4mm) reflect the differences in technical requirements, labor, and time costs.
For example, depending on the specific product requirements, the processing cost of some special copper capillary tubes can reach 200,000 yuan per ton, while the processing fee for ordinary copper capillary tubes is around10,000 yuan per ton.
Therefore, when customers inquire and place an order, please specify the copper pipe specifications, quantity, status, grade, application scenarios and other information you need, which is very helpful for us to accurately quote.
Copper tube packaging fee
Generally speaking, the packaging of copper pipes is included in the processing fee. If the customer requires the use of export wooden box packaging, then we will appropriately charge some materials and labor costs.
Taxes
The quotations of Winland Metal are all tax-inclusive.
Domestic shipping costs
Under trading conditions such as FOB and CNF, our copper pipe quotations include domestic transportation costs in China. We are responsible for the delivery of copper pipes to designated air or sea warehouses.
Port operating expenses
Including warehousing, document fees and other freight forwarding fees. Our copper pipe quotes generally include these costs. These costs are calculated based on the number of goods tickets, not the weight and volume of the goods. Therefore, when inquiring and ordering, please simply indicate whether you need to ship in batches.
Sea freight and insurance
These two kinds of expenses are different according to different trade conditions. The FOB price does not include ocean freight and insurance, and these expenses need to be borne by the buyer. Under CNF conditions, our copper pipe quotation will include ocean freight, but not insurance. For CIF price trading orders, our copper pipe price includes ocean freight and insurance.
