China Cu Output Data Analysis in April (May 28, 2012)

SHANGHAI, May 28 (SMM) – According to the NBS, China's copper semis output during April was 993,000 mt, down 5% MoM, and the decline was due largely to a drop in operating rates at copper wire rod producers, as well as weak demand for copper wire rod, which consumes nearly 50% of copper output. April is traditionally a peak demand period, but demand was down from normal levels compared to past years. As the pace of new state power investments was extremely slow from January to April, electric wire and cable demand was soft and limited copper wire rod consumption. Enameled wire and electrical equipment industries, as well as other downstream industries which use copper wire rod, also experienced soft downstream demand during April, causing operating rates at copper wire rod producers to fall. In addition, recent NBS data showed lower MoM output of railway locomotives, computer equipment, mobile telecommunication handsets, mobile communication base stations, household washing machines, power equipment, and other industrial products, negatively affecting copper semis consumption.