SHANGHAI, Dec. 12 (SMM) -- According to a recent SMM survey of 22 domestic aluminum wire and cable producers with capacity totaling 1.1 million mt/yr, operating rates at these producers were 75.3% during November, down 3.74% compared with 79.04% in October.
Small and medium aluminum wire and cable producers provided overhead wire and cable for local rural power network renovation projects, and overhead wire and cable is mostly weightless 10-35kv fine line, which affected the final results of operating rates at aluminum wire and cable producers. Production at large producers was stable, and most large producers were managing to complete previous orders from State Grid. The sixth batch of tender results will be released, and orders are expected to continue until March 2012. Export orders at aluminum wire and cable producers were stable in November, and only orders at small producers were down slightly, with high-tech wire and cable products enjoying strong competitiveness in the international market.
SMM believes the production of overhead wire and cable at SMEs will continue in December, as the Chinese government represents large-scale investments in the rural power network renovation projects during the 12th Five-Year Plan period. But doubts over the aluminum price volatility still exist, and production at producers will slow as the Chinese New Year holiday nears, so SMM predicts operating rates at aluminum wire and cable producers will fall slightly before the holiday.