SHANGHAI, May 8 (SMM) – With regard to copper wire rod orders, SMM's recent survey of 21 major domestic copper wire rod producers yielded the following results:
85% of the copper wire rod producers contacted by SMM said their orders will not increase in May and that their goal is to maintain April's orders. After China set its GDP growth target at 7.5% for 2012, the whole market investments have slowed, including construction and industrial projects. Hence, wire and cable demand fails to improve. Besides, the Chinese housing market remains slack, affecting demand for wire and cable used in construction. Meanwhile, domestic sales of household appliances are also negatively impacted by the housing sector. Enameled wire demand is hurt as a consequence. Hence, copper wire rod high demand period is unlikely to materialize if there are no significantly positive government measures.
5% of the surveyed producers showed more concerns over May's orders, pointing to increasing sale pressures since April and high finished good stocks.
The remaining 10% of copper wire rod producers cannot predict May's orders.