SHANGHAI, Jul. 24 (SMM) – Operating rates at domestic aluminum wire and cable producers averaged 73% in June, up 4 percentage points from May, according to a survey conducted by Shanghai Metals Market (SMM).
This signalled a peak season for aluminum wire and cable sector. Increased investments in power grid construction boosted order books at domestic aluminum wire and cable producers.
Although the number of power grid projects by the State Grid Corporation of China (SGCC) increased, order books for the rest of the year actually dropped. Wire and cable needed for current power grid construction had been ordered earlier this year or even the second half of last year, SMM learned from some producers. With many producers producing the same products, competition in the sector became all the more fierce.
Many were uncertain whether future power grid construction would continue to drive demand for aluminum wire and cable.