SHANGHAI, Apr. 28 (SMM) – A recent SMM survey of 21 major domestic electric wire and cable producers (total capacity: 996,500 mt/yr) revealed the following insights:
1) Average April Operating Rate at Electric Wire and Cable Producers Improves Slightly
The average operating rate for April at domestic electric wire and cable producers was 74.24%, up slightly by 2.83% from March's average. According to SMM sources, only a small number of producers received orders in April for materials used in urban power renovation projects. Cable and wire orders used in railways have also been sluggish, as investments in the railway sector have not yet been fully implemented. In addition, enameled and electronic wire orders were also weak due to a decline in demand for home appliances, so overall demand for copper wire and cable was up only slightly during April. SMM expects growth in demand for electric wire and cable to be limited in May as well, so the average operating rate will unlikely reach last year's level of 85.10%.
2) Raw Material Stocks at Electric Wire and Cable Producers Inch Higher in April
During April, raw material stocks at domestic electric wire and cable producers were 24.11% of production, up 1.55% MoM. Some producers must replenish some stocks ahead of the May Day holiday, but only did so cautiously.