70% of Electric Wire and Cable Producers Pessimistic over January Orders

SHANGHAI, Jan. 4 (SMM) – The latest SMM survey of 20 major Chinese electric wire and cable producers yielded the following with regard to January orders:

The average operating rate at these surveyed electric wire and cable producers is estimated at 72.79% in January, down further from December.

Based on the survey, 70% of producers hold the view that electric wire and cable orders will continue falling in January, pointing in part to traditionally low demand period in both January and February plus New Year and Chinese New Year holiday factors. Besides, as the year’s end nears, most projects have slowed, slashing demand for power cables, electronic wires, and cables and wires applied in projects. Most producers are upbeat about power cable demand for next year but are unclear about electric wire and cable demand. Combined with uncertainty in future copper price trend, there are few producers choosing to build stocks ahead of time.

The remaining 30% of producers SMM contacted believe that electric wire and cable orders will stay flat with the level seen in December 2012.