SHANGHAI, Sept. 13 (SMM) –Most of the 21 major domestic copper plate, sheet, strip and foil producers in a recent SMM survey said that demand will likely remain low during September.
About 62% producers in the survey believed orders for September will remain low. Exports at downstream producers of copper plate, sheet and strip are especially experiencing sharp declines when economies in the US and Europe are currently weak and overall consumption is weak. Copper plate, sheet, strip and foil producers now should busily make productions for preparations of high demand during the Christmas holiday period in Europe and the US, but these order requirements haven't begun yet due to the overclouded world economic recession. Besides, relatively low copper prices in recent days failed to drive plate, sheet and strip demand significantly.
Only 14% producers were positive towards orders in September. They believed consumption during September will gradually improve since the low demand period of July and August has passed. However, increases of orders will be limited given the negative macro environment, and significant increases will probably be seen in late September.
Approximately 10% producers in the survey were pessimistic towards September orders. As the issuance of the Notice of the People's Bank of China on Bringing the Margin Deposits into the Scope of Payment of Deposit Reserves has kept bank capitals much tighter, bank acceptance discounts become more difficult for some copper plate, sheet, strip and foil producers. Therefore, an already soft demand and tight cash flows propelled producers to be pessimistic towards orders during September.
The remaining 14% surveyed producers were unclear about orders in September.