SHANGHAI, Oct. 9 (SMM) – The latest SMM survey of domestic copper wire rod producers revealed that only 5% of these producers are optimistic over orders in October.
These copper wire rod producers expect that their average operating rate for October will be 67.65%.
55% of these producers see October orders flat with September as most of these producers opted to maintain normal operations during China's National Day holiday period. Downstream producers consuming copper wire rod just bought as needed when copper prices moved around RMB 59,000/mt before the holiday. Despite stable rod demand from the power sector, wire demand from construction, and demand for magnetic wires and electric wires remains sluggish. Hence, these copper wire rod producers expect October orders to stay flat with September levels.
40% of these producers are pessimistic over the outlook as they said their downstream consumers halted production during China's National Day holiday period and directly affected copper wire rod orders. Therefore, copper wire rod producers also chose to suspend production during the holiday period. Besides, long-lasting weak downstream demand also worsened copper wire rod producers' worries.
Merely 5% of these copper wire rod producers anticipate October orders to rally as they predict consumption will increase following the holiday despite sluggish orders at present.