Copper Downstream orders increased significantly

Wire and cable: Last week, wire and cable companies maintained normal production before stepping up production at the end of the week when copper prices dropped. SMM survey showed that the precipitous drop in copper prices incentivised some downstream buyers to place orders. One large cable factory said that their orders improved noticeably last week. However, in May, the demand from real estate sector and the State Grid was not strong, denting orders at wire and cable plants. Continuously falling copper prices have kept downstream buyers cautious.

Enamelled wire: Orders of enamelled wire improved at the end of last week due to lower copper prices. Orders at enamelled round wire companies were sluggish early last week. Orders fell sharply across home appliances, new energy vehicles, and the electronics industry. On the whole, the downstream demand is weak, and companies lack confidence in the market outlook. Near the end of the week, copper prices plummeted and that grew orders at most of the plants. But one company said the growth in orders was insignificant as many customers stood on the sidelines, and was concerned about the sustainability of orders.

Copper rod: The average operating rate of key copper rod producers using copper cathode was around 75.66% last week, a surge of 10.05 percentage points from a week earlier. According to the survey, orders of copper rod industry were not strong at the beginning of the week. But with the sharp drop in copper prices at the end of the week, downstream buying interest was boosted, boosting orders in the cable and enamelled wire industries significantly. Copper rod companies thus accelerated production, helping operating rates pick up quickly. However, market pessimism in the midst of the continuously falling copper prices resulted in a strong fear of further price declines across the downstream industries. Existing orders at downstream producers were tepid. Some copper rod plants said that the growth in orders last Friday had slowed compared with last Thursday. The market is still relatively pessimistic about the continuity of consumption.