SHANGHAI, Oct. 30 (SMM) – Half of the surveyed Chinese copper tube/pipe producers expected orders to fall in October, according to the latest Shanghai Metals Market survey.
SMM surveyed 20 major Chinese copper tube/pipe producers, with capacities totaling 1.36 million tpy, and learned that 50% of them saw no improvement in overseas demand after the summer break. Furthermore, little restocking of raw materials at Chinese air-conditioner producers reinforced their pessimism.
40% of the participants projected stable orders for October. Conditions at Chinese air-conditioner producers were stable, so demand for copper tube would hold steady, they said.
The remaining 10% of the surveyed producers were optimistic by expressing the wish to secure more orders to achieve the target for the year during 4Q.
With regards to price outlook, 45% of producers in the survey expected copper prices to fluctuate between $7,100-7,300 per tonne because of tight liquidity and lack of market confidence, SMM survey revealed.
20% of them were pessimistic towards the outlook, believing copper prices would retreat below $7,000 per tonne. The imbalance between supply and demand was expected to worsen during 4Q, as soaring imports and copper output added to supply pressures. Besides, a rising CPI, which rose above 3.0% in September, dashed market hopes of loosening of monetary policy, which would also restrict copper consumption growth.
35% of the surveyed producers said they were unclear over the outlook.