SHANGHAI, Jun. 19 (SMM) – With regard to orders in June, the latest SMM survey of major domestic copper plate, sheet, strip, and foil producers yielded the following insights:
55% of these producers see their orders falling sharply in June as downstream consumption should enter the traditional offseason in this month. The US and European economies remain slack and their markets stay weak, as the world's manufacturer, Chinese domestic cannot digest current copper plate, sheet, strip, and foil capacities. This has increased market competition. Coupled with increasing risks for recent copper prices, downstream enterprises consuming copper plate, sheet, and strip have kept their raw material inventories at low levels.
45% of these producers expect orders in June will keep flat with May's level. Electronic products are reported meager profit margins, and demand for lead frame materials is also softer than anticipated. Moreover, photovoltaic strip demand is also sliding owing to a slackening photovoltaic market. Although the Chinese government has introduced a lot of new measures and policies for new energy automobiles and new materials, few are implemented in industrial demand. Producers of copper foil applied in lithium batteries have yet seen any positive policy. In addition, LME copper strip consumption has yet to make breakthroughs since domestic LME industry is not strong and lacks core technologies. Hence, copper plate, sheet, strip, and foil orders are pessimistic over the long run.