SMM Cu Survey: Operating Rates at Major Copper Pate, Sheet, Strip and Foil Producers Flat MoM-Shanghai Metals Market

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SMM Cu Survey: Operating Rates at Major Copper Pate, Sheet, Strip and Foil Producers Flat MoM

Data Analysis 09:51:28AM May 17, 2010 Source:SMM

SHANGHAI, May 17 (SMM) - A recent SMM survey of 17 medium and large-size copper plate, sheet, strip and foil producers (total capacity: 860 kt) revealed the following insights:

1) Operating Rates Flat MoM, Down YoY
According to the SMM survey, the average operating rate at the 17 copper plate, sheet, strip and foil producers was 64.7% in May, flat with April levels, but down on a yearly basis.  Producers surveyed told SMM that orders were so strong that producers were able to maintain stable operating rates from March to May.  Operating rates at large producers were low since much of the capacity is recently commissioned.  Smaller producers maintained operating rates above 90%, and with flexible production models.  

2) Raw Material Inventories Fall 
The survey shows raw material inventories at the 17 producers were 34.1% of production during May, down from 42.8% in April.  Falling raw material inventories were due largely to the minimizing the financial risk in building stocks during late April and early May when copper prices were fluctuating wildly.  Based on the survey, producers told SMM that they would not hurry to add stocks at current low prices due to price volatility, opting to wait for a more clear market direction.

 

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: Operating Rates at Major Copper Pate, Sheet, Strip and Foil Producers Flat MoM

Data Analysis 09:51:28AM May 17, 2010 Source:SMM

SHANGHAI, May 17 (SMM) - A recent SMM survey of 17 medium and large-size copper plate, sheet, strip and foil producers (total capacity: 860 kt) revealed the following insights:

1) Operating Rates Flat MoM, Down YoY
According to the SMM survey, the average operating rate at the 17 copper plate, sheet, strip and foil producers was 64.7% in May, flat with April levels, but down on a yearly basis.  Producers surveyed told SMM that orders were so strong that producers were able to maintain stable operating rates from March to May.  Operating rates at large producers were low since much of the capacity is recently commissioned.  Smaller producers maintained operating rates above 90%, and with flexible production models.  

2) Raw Material Inventories Fall 
The survey shows raw material inventories at the 17 producers were 34.1% of production during May, down from 42.8% in April.  Falling raw material inventories were due largely to the minimizing the financial risk in building stocks during late April and early May when copper prices were fluctuating wildly.  Based on the survey, producers told SMM that they would not hurry to add stocks at current low prices due to price volatility, opting to wait for a more clear market direction.

 

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