Half Copper Wire Rod Producers Neutral towards April Orders

SHANGHAI, Apr. 10 (SMM) – According to a most recent SMM survey of 21 major domestic copper wire rod producers (total capacity: 3.8 million mt/yr), copper wire rod producers are cautiously optimistic towards orders in April, and estimated operating rates will move around 75.51%.

53% of enterprises surveyed believe orders in April will remain steady, with orders at some of them having improved noticeably in March. Downstream operations have been restarted, but demand from newly-increased large projects grew modestly, so orders will not increase significantly in April. Besides, some enterprises reported copper wire rod producers had expanded capacity significantly last year, so TC/RC competitions caused their profits to contract. Hence, they are unwilling to receive more orders given low profits.

33% of them are optimistic towards orders in April, believing demand for copper rod from electric wire and cable will improve since construction projects in north China will continue to increase. Besides, as small and medium copper rod producers using scrap copper cut or suspend production due to unfavorable scrap copper prices, the market will shift to copper rod produced with refined copper.

The remaining 14% see orders falling in April. Operating rates at those enterprises soared in March as their downstream consumers increased purchases for raw materials due to falling copper prices, so orders from those downstream buyers will fall in April.