SHANGHAI, Oct. 12 (SMM) –A recent SMM recently of 20 major domestic copper wire rod producers revealed the following:
Based on the survey, about 65% copper wire rod producers expect October orders to stay flat with September. They say copper price slumps during September enticed downstream power cable producers to buy copper rod, and will help rod orders remain at relatively high levels during October.
Approximately 15% producers are pessimistic. Some of them are mainly concerned about shortages in capitals. Others think the inversion in price relationship between scrap and refined copper is unlikely to improve, and will cause demand for low-oxygen copper rod to fall in October.
Around 10% producers are positive towards orders in October, since they believe copper prices will extend declines during October and will boost orders.
The remaining 10% producers believe October orders will depend on copper price trends since downstream producer’s wait-and-see sentiment still exists.