Chinese Factories Recoil From Paying Record Copper Prices.

Chinese factories are facing challenges in paying record copper prices, leading to delays in orders and reduced production. The surge in copper prices is causing disruptions in the domestic supply chain, affecting smelters, fabricators, and producers of goods such as solar panels and home electronics. The increase in prices is not easily absorbed by China's struggling economy, and cash-strapped households are likely to resist purchasing more expensive copper-based products. As a result, Chinese fabricators are expected to cut production rates, leading to rising inventories. While some hope for a rebound in demand if copper prices decrease, others believe that fabricators will eventually have to accept higher prices, resulting in lower profits for factories and customers. [Extracted from the article]

Copyright of Bloomberg.com is the property of Bloomberg, L.P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)