70% of Wire and Cable Producers Expect Stable Orders in October-Shanghai Metals Market

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70% of Wire and Cable Producers Expect Stable Orders in October

Industry News 04:56:51PM Oct 08, 2013 Source:SMM

SHANGHAI, Oct. 8 (SMM) – Shanghai Metals Market (SMM) undertook a survey on 20 Chinese wire and cable producers, finding that 70% of them expected stable order books in October, as they believe incremental orders will be limited in Q4 given worsening construction environment in north China. 

 
20% of wire and cable makers noted that orders may fall in October for three major reasons. First, the Chinese National Day holiday may lead to slower works for both governments and construction projects, with goods for October delivery possibly be postponed. Second, biddings for power grid projects have been completed, while any impetus from infrastructure and property market will be limited since consumption will unlikely show sharp increase in the traditional high demand season given the stronger-than-usual demand in offseason. Third, rules for aluminum alloy cable sector will be introduced by the end of the year, and the State Grid has begun increasing procurement of aluminum alloy cable. This may take away market share of copper wire and cable. 
 
The remaining 10% of producers, primarily enameled wire makers, expect orders to improve in October, as compressor, motor, and transformer markets – downstream consumer of enameled wire – turned around in September, and may see further improvements in October. 
 

70% of Wire and Cable Producers Expect Stable Orders in October

Industry News 04:56:51PM Oct 08, 2013 Source:SMM

SHANGHAI, Oct. 8 (SMM) – Shanghai Metals Market (SMM) undertook a survey on 20 Chinese wire and cable producers, finding that 70% of them expected stable order books in October, as they believe incremental orders will be limited in Q4 given worsening construction environment in north China. 

 
20% of wire and cable makers noted that orders may fall in October for three major reasons. First, the Chinese National Day holiday may lead to slower works for both governments and construction projects, with goods for October delivery possibly be postponed. Second, biddings for power grid projects have been completed, while any impetus from infrastructure and property market will be limited since consumption will unlikely show sharp increase in the traditional high demand season given the stronger-than-usual demand in offseason. Third, rules for aluminum alloy cable sector will be introduced by the end of the year, and the State Grid has begun increasing procurement of aluminum alloy cable. This may take away market share of copper wire and cable. 
 
The remaining 10% of producers, primarily enameled wire makers, expect orders to improve in October, as compressor, motor, and transformer markets – downstream consumer of enameled wire – turned around in September, and may see further improvements in October.