SHANGHAI, Jun. 5 (SMM) – The latest SMM survey to 21 domestic wire and cable producers shows that 76% of them expect orders to remain stable in June. These producers already reported higher operating rates in May, and many plan to maintain normal production after winning bids for new projects and given the existing orders to be fulfilled.
19% of producers believe operating rates will rise further in June as producers will ramp up production so as to fulfill orders of new projects which are scheduled for delivery between July and September. Wire and cable consumption in the latter half of the year typically outstrip that in the first half. However, since market liquidity tends to tighten lately, these producers, being uncertain about whether the investment for new projects will be in place as scheduled, are cautiously optimistic to sales outlook.
5% of producers, primarily enameled wire producers, expect orders to fall in June. Home appliance manufacturers – major consumers of enameled wire – will enter low demand season in June, leaving these producers less confident to orders in June.