SHANGHAI, Oct. 24 (SMM) – With regard to October orders, the latest SMM survey of 23 domestic copper plate, sheet, strip, and foil producers yielded the following:
SMM believes that the average operating rate at domestic copper plate, sheet, strip, and foil producers should be around 56.37% in October, down slightly from September.
61% of the surveyed producers hold the view that October orders will remain flat with the previous month. October is generally the traditionally peak demand period for copper plate, sheet, and strip. But from this year's actual consumption, merely orders of electronic strips and cables have improved marginally, while demand for copper plate, sheet, and strip from home appliances remains slack owing to controls on the real estate sector. Furthermore, against the backdrop of sluggish global economy, busy consumption season for the Christmas holiday in the US and Europe has yet to start. Hence, these producers expect October orders to be little changed.
22% of these copper plate, sheet, strip, and foil producers anticipate their orders will decrease in October, pointing to the fact that downstream producers were cautious to place orders when copper prices moved above RMB 59,000/mt. Besides, some producers shortened the time for production in October due to China's National Day holiday.
The remaining 17% of copper plate, sheet, strip, and foil producers are optimistic over the outlook. In their views, as the low season abates gradually, and since copper plate, sheet, strip, and foil orders were not seen to improve noticeably in September, consumption is likely to increase gradually during October.