SHANGHAI, Feb. 5 (SMM) – According to the latest SMM survey of 21 domestic electric wire and cable producers, 81% of producers expect their February orders to decrease.
SMM estimates that the average operating rate at the surveyed electric wire and cable producers will be around 55.84% in February.
The survey showed that as high as 81% of electric wire and cable producers are pessimistic over their February orders, due partly to weather factor and the Chinese New Year holiday factor. Besides, February is the traditionally low demand period for electric wires and cables. Most projects slowed with the holiday nearing, so power cable demand and demand for wires and cables used in construction are abating. Even large power cable producers which kept high operating rate through 2012 predict falling orders in February.
The remaining 19% of electric wire and cable producers anticipate February orders to hold flat with January levels, citing the following two reasons. First, they said that they will be only closed for the holiday for 2-3 days. Second, some producers told SMM that they will try to finish earlier bidding projects during February.