SMM Cu Survey: Operating Rates Remain Stable in November at Eclectic Wire and Cable Producers

SHANGHAI, Dec. 5 (SMM) –A recent SMM survey of 21 major domestic eclectic wire and cable producers (total capacity: 877,000 mt/yr) revealed the following insights:

1) Operating Rates Remain Stable in November 
The average operating rate during November at the 21 major domestic electric wire and cable producers was 80.3%, down by only 0.4% from October’s 80.7%. Despite a slight drop in orders, the surveyed producers were generally maintaining stable operating rates during November. These surveyed producers also told SMM that as previous orders were being delivered and fewer new orders came in, operating rates began to fall slightly. As colder weather arrives, demand for wire and cable used by the construction sector will fall, so operating rates at domestic electric wire and cable producers during December will also continue to fall slightly.
     
2) Raw Material Inventories Continue to Fall in November 
Raw material inventories at the surveyed producers were 22.39% of production in November, down by 4% from October levels. Based on SMM sources, most producers surveyed now continue to purchase raw materials on an as-needed basis due to poor economic conditions, with some intending to cut further raw material inventories. Some producers say they will replenish inventories if copper prices fall in January and February 2012.