SHANGHAI, Jun. 19 (SMM) – SMM survey found that the operating rate at surveyed aluminum wire & cable producers averaged 69.36% in May, up from April’s 64.5%. This marks the third month in a row that the operating rate grew.
Operating rates at domestic aluminum wire & cable producers rose significantly in May, driven largely by increased power grid projects. Medium and large producers secured more orders than smaller ones as the State Grid Corporation of China (SGCC) demands higher production capacity and product quality. Small producers are only able to gain orders from municipal engineering and real estate sectors. This is why operating rates at small producers were lower than those at medium and large producers.
Medium and large producers say their current orders are sufficient for them for produce through the end of the third quarter and express optimism over future orders. Orders at smaller ones, however, remain poor. Some told SMM that their existing orders can only last 20 days and that they will be forced to cut production if no new orders are secured 20 days later.