SHANGHAI, Jul. 25 (SMM) – With regard to their orders in July, the latest SMM survey of Chinese copper plate, sheet, strip, and foil producers yielded the following insights:
68% of Chinese copper plate, sheet, strip, and foil producers anticipate their orders to fall further in July, which they largely contribute to the traditionally low season. These producers said demand from auto, home appliances, electronics, and other terminal industries is falling. Besides, domestic consumption growth is also slipping with some commodities even experiencing negative growths. Coupled with uncertainty in future copper price trends, downstream producers are hesitant to place orders, another factor affecting July's orders of copper plate, sheet, strip, and foil.
The remaining 32%, mostly large domestic copper foil producers, believe that their orders in July will remain flat with June. Although copper foil orders have been smaller thus far this year than those in past years and export markets are also not very good, copper foil demand is still comparatively stable.
According to SMM estimates on July's output at these domestic copper plate, sheet, strip, and foil producers, their average operating rate may drop to 53% this month.