In the past two years, the domestic prices of copper and zinc have been rising to record highs and doubled. By the first quarter of 2006, the price increase of both showed no signs of slowing down, and it was aggravated. Affected by this, the price of Foshan brass belt also rose sharply, with the cumulative increase exceeding 1.200 yuan/ton, a multi-year high. For manufacturers, the rise in copper prices is also what they want. However, for the rise similar to the above, copper strip manufacturers reflect that this will only do more harm than good. Because at this time, the price of brass belt has made their customers unbearable. If the price continues to rise, it will only weaken the market consumption power. Some copper strip manufacturers have no choice but to say that because copper strip users find it difficult to accept such a high price, they are constantly reducing their purchases. Compared with the same period last year, their sales decreased by nearly 50%. In order to stimulate market consumption, copper strip manufacturers can only find ways to slow down the rise of copper strip prices. At this point, copper strip production enterprises are in a dilemma. If the inventory of finished products decreases too fast, the cost of opening positions in the future will be higher and the process will be longer, so it will be difficult to compete with peers. After all, domestic copper supply is very scarce at this time. If the turnover of finished goods inventory is slow, it will increase the pressure of capital operation of enterprises. It is understood that at this time, the gap between the price of brass scrap and the price of corresponding varieties of copper strip is less than 3000 yuan/ton.

Due to the poor sales of finished products, some copper strip production enterprises in other provinces stopped the furnace due to product and capital faults. Affected by the country's increase in export tariffs on copper strips, copper strip manufacturers in other provinces stopped the export trade of brass strips. For copper strip traders, although the bid-ask spread is basically unchanged, their operating efficiency has been greatly reduced due to the increase in investment and the decline in sales. Affected by the sharp drop of copper price in February, copper strip traders try to adopt locking operation, that is, lock the price with copper strip users immediately before or after placing an order, so as to reduce business risks. Although the price of copper keeps rising, it has not actually brought them much profit. As the international copper price will exceed $6,200, the cumulative increase will exceed 1 1,000 $/ton, and the domestic investment funds will make huge profits, but it will also increase the pressure on the international copper price to fall back. Faced with the phenomenon of high risk of copper price at this time, copper strip traders all adopt cautious operation strategies and keep light warehouse operation as the mainstay.