SHANGHAI, Apr. 2 (SMM) - A recent SMM survey of 22 electric wire and cable producers shows that the surveyed producers expect orders for April to keep growing, and this will drive operating rates up to 81.63%.
Approximately 41% of producers remain optimistic towards orders due to the following two reasons. First, production at construction sites will further improve as the weather is turning warmer, bolding well for electric wire and cable demand. Second, the bidding project to be held by China Southern Power Grid will also increase production in April.
Around 54% of producers understand that operating rates at electric wire and cable producers will have limited upward room to rise in April after a sharp increase in March, and will keep stable. Those producers believe that the positive impact from construction investment in China will not be significantly great, and the progress of urbanization will be slow, and the emphasis will be put on its structure. With the absence of large projects, demand for electric wire and cable will keep stable.
The rest 5% producers are pessimistic towards the outlook, and orders for April should drop after sharp growth in March, which is a traditionally strong demand season, and also because some producers advanced to place orders at lower prices.