SHANGHAI, Jan. 22 (SMM) – The latest SMM survey showed 59% of the surveyed Chinese copper plate, sheet, strip and foil producers believe their January orders will hold flat with December.
These producers estimate their average operating rate at 57.13% during January.
Around 59% of copper plate, sheet, strip and foil producers see no major changes in January orders. In their views, downstream demand will remain slack as the Chinese New Year holiday approaches. Besides, spot copper prices have been moving above RMB 57,000/mt since early January, depressing downstream consumers' interest in building copper plate, sheet, strip and foil stocks. Furthermore, some producers said their orders are generally long-term contracts and thus remain stable.
Roughly 32% of producers are downbeat about January orders, pointing in part to the arrival of Chinese New Year holiday and low demand period. In addition, downstream producers consuming copper plate, sheet, strip and foil resist current high copper prices and are reluctant to place orders.
The remaining 9% of producers anticipate copper plate, sheet, strip and foil orders to increase in January. They hold the view that downstream consumers will step up production in January to welcome post-holiday consumption, boosting the need for building copper plate, sheet, strip and foil inventories.