SHANGHAI, Sept. 12 (SMM) – According to the latest survey of 21 copper wire rod producers undertaken by Shanghai Metals Market (SMM), 85% of the producers expect order books to remain stable in September.
Most producers believed that upward room for sales would be limited in September given the satisfactory copper wire rod consumption in August and the relatively tight liquidity in H2 among enterprises. In addition, the increasing supply for copper wire rod allowed ready access to copper wire rod for its consumers, such as wire and cable makers and enameled wire producers, so downstream buyers are not in urgent need to buy goods in large amounts.
10% of producers expected higher orders in September. Wire and cable orders placed earlier should be delivered given the smooth progress for projects in the traditional busy season, which will lift demand for copper rod. Besides, the improvements in air-conditioner compressor market should push up copper wire rod demand from enameled wire producers.
However, 5% of them worried that sales may be poorer in September. Order increase has been constrained by the remarkable copper price rise in mid-August, and bearish downstream buyers were unwilling to purchase at high prices. Thus, transactions were rarely made at price above RMB 52,000/mt. The unimproved demand overseas also left these producers pessimistic to orders in September.