SHANGHAI, Jun. 18 (SMM) – SMM’s surveys of copper wire rod producers found that operating rate at the surveyed producers was 75.45% in May, up 2.77% MoM and 2.14% YoY.
Consumption of copper wire rod was strong in May, driven by peak-demand season of wire and cable, enameled wire, car wire, electric wire and railway wire. Most copper rod producers using scrap copper as raw materials suspended production or kept production volumes low in May as scrap copper lost its price appeal over refined copper. This boosted demand for copper rod produced with refined copper, pushing operating rates at most large copper rod producers up.
The rally in copper prices eased market pessimism. Some wire & cable producers with orders began to purchase copper rod.
Copper rod consumption from some sectors has faltered slightly in June. Hence, SMM expects operating rates at copper rod producers to fall back to 74.36% in June.