Hot Expansion of Copper Plate, Sheet and Strip Capacities, to Reach 460 kt in 3 Years

SHANGHAI, Jun. 17 (SMM) –Based on a recent SMM survey of major domestic copper plate, sheet and strip producers (total capacity: 877 kt/yr), about 461 kt new capacities for copper plate, sheet and strip will be put into production before 2015.
Around 13 of the 20 surveyed producers have capacity expansion plans recently, which were different from 10 kt to 60 kt. Total expanded capacities at the 13 producers will reach 461 kt, including 200 kt production capacity in 2011, 70 kt production capacity in 2012, and 190 kt production capacity in 2013.

Copper plates, sheets and strips are widely used in electronic, communication, household appliances and automobile industries. China’s copper plate, sheet and strip industry started relatively late, with only a couple of hundred thousand capacities annually in 2001. However, copper plate, sheet and strip enterprises expanded rapidly in the past ten years, with total capacities increasing to more than 2 million mt.

The continuous expansion of copper plate, sheet and strip capacities caused excessive supply in domestic copper plate, sheet and strip market. With more severe competition, operating rates at copper plate, sheet and strip producers began to fall markedly.
Based on SMM survey, general operating rates at copper plate, sheet and strip producers have been maintaining at around 60% since 2010, with no big difference between the seasonal low and peak demand period. However, operating rates at producers reached 80% at the seasonal high demand period before 2010, while operating rates were only around 64% in 2Q 2011.
Excessive capacities and lower operating rates have become problems in China’s copper plate, sheet and strip industry that can be neglected. SMM believes that copper plate, sheet and strip enterprises shall increase new capacity projects more rationally, making market-oriented and high-end products in short supply as the future development directions, though improving production technology or promoting equipment levels.  

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