SMM Cu Survey: Significant Increases in Operating Rates at Domestic Cable and Wire Producers-Shanghai Metals Market

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SMM Cu Survey: Significant Increases in Operating Rates at Domestic Cable and Wire Producers

Data Analysis 01:10:51PM Mar 08, 2010 Source:SMM

SHANGHAI, Mar. 8 (SMM) -- A recent SMM survey of 18 major domestic cable and wire producers (total capacity: 666 kt/yr) revealed the following insights:

1) Significant Increases in Operating Rates
According to the SMM survey, the average operating rate at the cable and wire producers was 76.2% in March, up 7.6% from January, and up 13.1% YoY.  A peak consumption period begins after the Chinese New Year holiday, with significant improvements in operating rates reported, especially in larger cable and wire producers, which were up 14.2% from January levels.  Operating rates at medium-size producers remained stable.

2) Declines in Raw Material Inventories
The SMM survey shows raw material inventories in March were 23.7% of consumption, down 8.2% from January levels.  Most cable and wire producers say they only purchased a limited amount of raw materials after the holiday due to higher prices, preferring instead to consume existing stocks.  Copper rod is the main raw material of cable and wire producers, so demand for refined copper should slow as a result.

 
Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

SMM Cu Survey: Significant Increases in Operating Rates at Domestic Cable and Wire Producers

Data Analysis 01:10:51PM Mar 08, 2010 Source:SMM

SHANGHAI, Mar. 8 (SMM) -- A recent SMM survey of 18 major domestic cable and wire producers (total capacity: 666 kt/yr) revealed the following insights:

1) Significant Increases in Operating Rates
According to the SMM survey, the average operating rate at the cable and wire producers was 76.2% in March, up 7.6% from January, and up 13.1% YoY.  A peak consumption period begins after the Chinese New Year holiday, with significant improvements in operating rates reported, especially in larger cable and wire producers, which were up 14.2% from January levels.  Operating rates at medium-size producers remained stable.

2) Declines in Raw Material Inventories
The SMM survey shows raw material inventories in March were 23.7% of consumption, down 8.2% from January levels.  Most cable and wire producers say they only purchased a limited amount of raw materials after the holiday due to higher prices, preferring instead to consume existing stocks.  Copper rod is the main raw material of cable and wire producers, so demand for refined copper should slow as a result.

 
Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn