SHANGHAI, Mar. 6 (SMM) –With regard to March's copper wire rod orders, the latest SMM survey of major domestic copper wire rod producers revealed the following insights:
50% of the copper wire rod producers contacted by SMM expect copper wire rod orders will remain little changed during March. Some of these producers said their orders already returned to normal levels in February. However, demand for enameled wire, used in home appliances, is now lower than that in 1Q last year. Therefore, the traditional high demand period for copper wire rod is unlikely to arrive in March. Other producers told SMM their order volumes increased just slightly in February and remained yearly low due to sluggish consumption. As the 5th Session of the 11th National People's Congress (NPC) and the 5th Session of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC) are held in March, markets are awaiting introduction of policies concerning government investments, housing market, railway construction, exports, domestic demand, etc. Real improvement in consumption is expected to arrive in April.
45% of copper wire rod producers contacted by SMM hold the view orders will experience some rises in March. As downstream enterprises only resumed operation after the Lantern Festival, overall market demand for copper wire rod was impacted. Besides, construction projects in North China proceed very slowly due to cold weather. Nevertheless, downstream enterprises will recover production gradually as the weather becomes warmer during March, some outside construction projects will also commence, both of which will boost copper wire rod orders in March. The traditional high demand period, though, is estimated to be in May.
5% of the surveyed copper wire rod producers cannot predict March copper wire rod orders.