SHANGHAI, Nov. 14 (SMM) -- According to a recent SMM survey, operating rates at large aluminum wire and cable producers with capacity above 100,000 mt were 69.4% during October, down 5.3% from September.
SMM sources report that declining orders were behind lower operating rates at large producers in October. The weather in North China turns cold in October, and the construction of power grid projects in Liaoning and Heilongjiang provinces slowed as well, so orders received by large producers whose customers are mainly in North China declined. In addition, aluminum wire and cable consumers preferred to adopt a wait-and-see attitude given severe aluminum price volatility in recent two months, which also resulted in falling orders at aluminum wire and cable producers.
SMM believes large aluminum wire and cable producers generally reported falling orders in October due to the cold weather in North China, and predicts their operating rates will improve in December in view of restocking by large enterprises at the year’s end.