SHANGHAI, Nov. 15 (SMM) –According the latest SMM survey of major domestic copper wire rod producers, most producers say high order levels can extend in November.
Approximately 71% producers surveyed expect November orders to stay flat with October levels. First, as copper prices lack rising momentum, the inverted relationship between scrap and refined copper will continue, dampening orders for low-oxygen copper rod but helping boost orders at oxygen-free copper rod producers using refined copper as raw materials. Second, China’s electric power project is going on, so demand for electric wires and cables will remain strong, which will help maintain orders in November.
Some of producers pessimistic about November orders say since downstream enterprises significantly made stockpiles after the 9-day National Day Holiday, orders during October reached a yearly high. As the contradiction between market demand and supply eases, orders in November are unlikely to reach highs. In addition, producer of copper wires and cables used in railway construction say due to shortages of capitals, the construction of some railways is postponed, leading a fall in copper wire and cable demand.
A small number of producers surveyed believe November orders will increase slightly, because the National Day Holiday affected Production in October.
About 5% producers can’t predict about November orders.