SHANGHAI, Jul. 4 (SMM) – With regard to wire and cable orders for July, the latest SMM survey of 21 major domestic wire and cable producers yielded the following insights:
SMM's latest survey found 62% of wire and cable producers anticipate their July's orders will remain flat with June's levels. Some of these producers said their orders can at least extend to August, pushed up by orders from the State Grid Corporation of China (SGCC) and China Southern Power Grid (CSG). Furthermore, despite relatively weak copper prices, the SGCC has announced the list of enterprises that won the third group of projects, with large electric wire and cable producers reporting sufficient orders and optimistic over July's orders. However, these electric wire and cable producers said orders from the SGCC are without clear delivery dates and have merely increased marginally. This suggests that demand has yet to improve noticeably. In addition, downstream enterprises using electromagnetic wire, enameled wire, and electronic wire gradually faces a traditionally low demand period. Combined with China's unclear economic outlook, these producers believe their July orders are unlikely to increase.
19% of the surveyed wire and cable producers see their orders falling in July. These producers mainly produce wires used in construction, special wire and cable, high-voltage wire, and enameled wire, and told SMM that orders for special wire and cable, as well as high-voltage wire will especially decrease in July owing to the same low demand period. Moreover, demand for home appliances and electric machinery is gradually softening, depressing demand for enameled wire. These wire and cable producers said demand will warm up in September and hold hope that the introduction of some positive measures from the government will increase power grid investments.
14% of these producers are positive towards July's orders, pointing to the fact cash flows will improve in the second half of this year and push up the progress of constructions.
The remaining 5% producers cannot predict their orders in July.