Traditional "September-October peak season" for copper consumption: What are the expectations for power-related end-user consumption? [SMM Analysis]

As the traditional peak season in September approaches, how has recent downstream copper consumption been performing? What are the expectations for the traditional "September-October peak season"? The SMM survey team investigated downstream industries including power construction, infrastructure, and real estate development. The latest survey results are summarized as follows:

Company A (Power Construction): After the high-temperature weather, construction efficiency has improved. We have recently won some infrastructure projects and are quite optimistic about September.

Company B (Power Construction): Currently, there are not many new projects, mainly focusing on existing ones. Traditional power generation projects have decreased significantly due to the rise of wind and solar power, which has impacted the company. We are not optimistic about the future market.

Company C (Infrastructure): There are fewer projects this year, and no new projects have been received recently. We do not have strong expectations for September. Raw material procurement is minimal, and funds are tight, mainly for essential needs.

Company D (Infrastructure): Recently, there have been quite a few new projects, but the overall number of projects is less than last year. New projects are still increasing, but downstream funds are tight, and project settlement cycles are generally long.

Company E (Infrastructure): National projects are progressing steadily, following the normal schedule. These are long-term projects. The trend is shifting towards the northwest, with more infrastructure companies exploring projects there. We believe the development potential in the northwest remains significant, while there is little left to do in the southeast coastal areas.

Company F (Real Estate Development): We currently have two projects under construction, which are in the capping and decoration stages and are expected to be completed this year. However, there have been no new projects in H2, and no recent land acquisitions. Investment activities are almost non-existent. Most private enterprises in the market are still observing, and no one dares to invest. Our funds are tight, housing inventory is low, and sales are generally mediocre.

Company G (Real Estate Development): Project progress has been slow recently, significantly affected by high temperatures and funding issues. As our funds are tight, project settlements are delayed as much as possible, and expense applications and approvals are stringent. We have two ongoing projects expected to be completed next year, but no new projects have started. The real estate market is not doing well, so the leadership is not keen on acquiring land for new projects. We may focus on construction and cooperation in the future.

Company H (Real Estate Development): Project progress is slow, largely influenced by recent weather. One project is expected to be delivered by the end of the year, with more completions next year. Two new projects are expected, but they are still in the negotiation stage, and it is uncertain when they will start, though it is likely before the end of the year.

Company I (Real Estate Development): In August, housing sales quite varied. Sales for improved housing were good, with many customers paying in full, but demand for essential housing remained weak, with customers generally comparing multiple options.

Additionally, the SMM survey included some wire and cable companies. Current orders from the power grid sector perform well, while those from the civilian wire sector are not ideal. Overall, as the traditional peak season approaches, market views on the "September-October peak season" are mixed. Most companies expect consumption to improve in the coming months and are optimistic about September. However, the overall market environment is not favorable, significantly impacting the real estate market. Related fields such as real estate development and housing construction hold a cautiously optimistic view on consumption. SMM will continue to monitor the market situation and bring you the latest updates.