The influence of domestic demand on Metal Products

The strong domestic demand and the contradiction between supply and demand of some products have promoted the price increase of non-ferrous metals and agricultural products. Due to the sustained rapid growth of the Chinese economy and the rapid development of the manufacturing industry in recent years, China’s demand for non-ferrous metals, steel, cotton, natural rubber and other bulk raw materials has continued to grow, and it has become a consumer or producer of various raw materials. Affect the supply and demand and price fluctuations of related products throughout the world. At the same time, some products in the QCIT Group's factory are affected by the rising factors of steel, and may be affected by materials in the future. The Group's products will be fully adjusted in price in the future. QCIT Group believes that the future price trends of bulk raw materials and the judgment of the beneficial industries need to be based on international market factors, industry supply and demand Judging from various aspects such as capacity changes, China's import and export policy control, industry division and relevance.

1. International market factors: From the perspective of commodities, the momentum of economic recovery is currently relatively good, especially the weak GDP of the US economy in the last quarter, which has made the economic circle generally pessimistic about the future recovery of the world economy. On the other hand, due to the impact of the depreciation of the U.S. dollar, the U.S. exports performed poorly in the last quarter. From the perspective of the U.S. dollar exchange rate, the possibility of a rebound is very small. The above factors will provide a more favorable environment background for the maintenance or further increase of the prices of bulk raw materials.

2. Changes in the supply and demand capacity of the industry: Due to the recovery after the epidemic, the supply of industrial products will explode in a period of time, so its supply capacity will not show up until the next season. The construction period of heavy industries such as non-ferrous metals is long. Although there are many construction projects under construction such as primary aluminum and steel, it is impossible to develop new production capacity in 2020. Other construction projects of alumina and copper are far from being To meet the growing domestic demand, the contradiction between supply and demand will be more difficult to maintain.

3. The intensity of China's import and export policy control: foreign trade issues have always been one of China’s concerns. In this context, although the government may take tough measures to prevent the continuous rise of industrial products in the short term, it is impossible to import large amounts of goods. The method caused the prices of related derivatives to fall rapidly. On the contrary, the rise in the prices of finished products in the downstream terminal industry will ease the pressure on industrial finished products manufacturers such as QCIT from the rise in the prices of upstream raw materials, thereby helping to fine-tune the prices of upstream raw materials.