SHANGHAI, Aug. 9 (SMM) –A recent SMM survey of major domestic copper wire rod producers revealed that copper wire rod consumption will remain weak during August.
Based on the survey, about 55% producers expected orders in August will remain flat with July levels. However, it’s worth noticing that a small number of these surveyed producers (downstream producers: wire and cable producers) said they will be able to receive enough orders in August. However, most producers in the survey told SMM that orders during July had already begun to fall, and that the situation will extend throughout August, but the chance of a further drop in August orders is slim.
Around 40% producers believed orders in August will fall compared with July, as downstream enameled wire demand is weakening given the seasonal low demand period during August, and since power cable demand can’t act as a driving force for copper wire rod production in the near term.
Only 5% producers expected an increase in August orders, which was due mainly to the fact that accumulative orders at a producer will arrive during August, as it resumes production from earlier equipment problems. However, these producers said market demand for copper wire rods will be weak during August.