SHANGHAI, Nov. 2 (SMM) –According to the latest SMM survey of 21 major domestic electric wire and cable producers, most producers expect wire and cable demand will virtually keep stable in November.
About 72% producers surveyed believe November orders will remain flat with October levels. As the end of the year approaches and due to unfavorable weather conditions, operating rates will be dragged into low levels in December, so electric wire and cable producers will increase production during November, which will support order growth. However, sharp declines in orders from big projects and unstable supply of capitals on the market will keep producers on edge towards placing orders. Therefore, electric wire and cable orders in November will be flat with October levels.
Around 14% producers in the survey are pessimistic. Some of these producers say North China has entered winter and a slowdown in projects there will weigh down wire and cable demand, which will negatively affect operating rates at the surveyed producers. Others tell SMM that orders will decrease gradually under the pressure of cash flow problems.
The remaining 14% producers are positive towards orders in November. They hold the view that if copper prices continue to rise, the need of stockpiling from downstream producers will stimulate consumption of electric wire and cable.