Recently, the prices of aluminum and copper keep rising and the rising trend has never end since the beginning of September until the recent couple of days when we saw a bit of stabilizing indication. What is the current production status inside Winshare Thermal as an aluminum heat sink manufactured? How large the impact is?
Based on the editors' understanding, the entire aluminum industry is subjected to its impacts. Since the craziness for aluminum in September among the upstream accessories companies, these upstream companies have increased their prices several times in October. For the next couple of days, many finished-product companies can no longer withhold the pressure and started issuing price increase announcement letters. For a short period of three months, the entire industry has been suffering from the price hikes of the raw materials and it's really a pain in the neck.
The editors of aluminum heat sink manufacturers understood from the financial information that, the policy afterwards is looking good from a macroscopic aspect. If the economic measures carried out by various countries can get their financial policy stronger, the demands of bulk commodity from fundamental constructions can trigger the needs or even beyond the expectation and it is expected to see a longer term of price rising. From the fundamental aspect of supply and demand, the logistics is getting better with the support from the costs. The return in the domestic actuals inventory and godown warrant is faster. The price of aluminum is suffering from pressures during the replenishing process of the actuals. The LME keeps at premium and the earlier inventories keep in reducing. Therefore, the overseas pricing is stronger. However, the LME inventory started to return this week and we need to pay close attention to the pressure on the aluminum pricing due to the inventories at the later period. We can make out that, it is still unclear whether the aluminum pricing will return and the uncertainty certainly exists.
Winshare Thermal is an outstanding high power heat sink manufacturer in China and our main products include high power aluminum extruded heat sinks and copper-aluminum alloy heat sinks with a high demand for aluminum and copper. We have scientific assessment of the pricing trend of raw materials and had overseen the price hike of aluminum and copper. We have accumulated lots of experiences in coping with the raw material price variations for more than a decade and therefore we can carry out measures including effective predictions, stock up in advance, and conduct active transfers so as to effectively address the craziness for aluminum. We have formed a strategic collaborative relationship with our suppliers especially during the process of manufacturing aluminum extruded heat sinks and skived fin heat sinks. This way we are able to effectively avoid the issues of being out of stock or less stock and therefore we can enhance our production stability to ensure the normal throughput and realize timely production and timely shipment of each order so as to win over our customers' confidence.