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Average Operating Rate Holds Stable at Domestic Electric Wire and Cable Producers in June
Jul 2,2013 09:41CST
data analysis
Source:SMM
The survey of 20 major domestic electric wire and cable producers reveals the average operating rate came in at 84.7% for June, flat at May’s level.

SHANGHAI, Jul. 2 (SMM) – A recent SMM survey of 20 major electric wire and cable producers (total capacity: 983,000 mt) revealed the following insights: 

1) Average Operating Rate Holds Stable at 84.7% in June 

The survey of 20 major domestic electric wire and cable producers reveals the average operating rate came in at 84.7% for June, flat at May’s level. Operating rates at large producers were up 1.85% MoM to 89.08%, while rates at medium producers were down much by 6.61% MoM. Orders at large producers, mainly electric cable producers, were stable due to steady progress at power grid and engineering projects. During the first five months of 2013, completed investment in power grid construction totaled RMB 120.1 billion, up 19.74% YoY. Some large producers told SMM that copper consumption grew by around 15% during 1H 2013, and that demand for railway cables and wires were also up significantly. From January to May 2013, completed investment in national railways and joint-ventured railway projects reached RMB 132.3 billion, up 25.5% YoY, and helping support the higher operating rates at large electric cable and wire producers. Rates at medium producers fell to 73.73% in June, due mainly to the low demand season for home appliance manufactures, which are a major consumer of enameled cable. The average operating rate for July is expected to fall slightly to 81.04% as orders continue to fall.  

2) Raw Material Inventories at 27.83% of Production 
 
Raw material inventories were down in June to 27.83% of production. Falling copper prices during June were blamed for the decline, and in late June, copper spot prices had fallen below RMB 50,000/mt for the first time since October 2009. Market fears over falling prices made downstream producers even more wary of purchasing, resulting in lower raw material stocks. 
 
operating rate survey
copper wire and cable

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