SHANGHAI, Feb. 8 (SMM) – SMM selects the following three pieces of copper industry news for this week:
81% of Copper Electric Wire & Cable Producers Downbeat about February Orders
The latest SMM survey of 21 major Chinese electric wire and cable producers showed 81% of producers expect their February orders to fall.
SMM estimates the average operating rate at the surveyed electric wire and cable producers at 55.84% in February.
As high as 81% of producers are pessimistic over February orders, pointing in part to severe weather and the approaching Chinese New Year holiday. Besides, February is the traditionally low demand period for electric wire and cable. With the holiday drawing near, demand for both power cable and wire and cable used in constructions is abating. Even large power cable producers which kept operating rate at highs through 2012 anticipate February orders to decrease.
Factors Impacting Copper Markets
There are factors affecting copper markets at present.
Analysts usually make assessment on copper ore supply in the earnings session, reflecting major global suppliers' complaints.
Analysts list falling ore grades, labor disputes, equipment problems, and unexpected adjustments in copper mining plan as reasons behind restrictions in copper supply.
A Copper Delivery Warehouse Established in South China
On February 6, the Guangzhou Guangdong Reserve Bureau Eighty-Three Department formally became a copper delivery warehouse, the first warehouse that the Shanghai Futures Exchange set up in south China.
South China is the second largest consumption region for refined copper as the amount of refined copper imports at Guangzhou Huangpu port accounts for 10.4% of China's total imports, the second largest except for Shanghai port. With copper consumption rising gradually in south China in the past few years, the call for establishing a copper delivery warehouse there is increasing.