SHANGHAI, Dec. 13 (SMM) –Based on the latest SMM survey of major domestic copper wire rod producers, as high as 68% producers expect orders for December to fall.
These pessimistic producers believe demand for wire and cable used by the construction sector will fall due to the arrival of winter. Besides, as the inverted relationship between scrap and refined copper improves and turns to normal, orders are likely to go to copper rod producers using scrap copper as raw materials, which will affect orders at producers using refined copper as raw materials. In addition, as the end of the year nears, some producers shift focus on capital recovery and plans for 2012, and also have to voluntarily scale back production owing to tight cash flows.
Another 32% producers in the survey say orders for copper wire rod will stay stable in December. These producers are generally large companies, and orders there are relatively stable and used in the power electric industry.