It is a traditionally low demand period for wire and cable in January and February. Weak production at most construction projects ahead of the Chinese New Year holiday will significantly reduce demand for wire and cable. This serves as the mainly reason behind the expected fall in orders. 

 

The SMM survey covers 21 major domestic wire and cable producers, with capacities totaling 1.04 million mt. 

 

The rest of 48% participants believed that orders would be little changed in January. Those producers are mainly engaged in manufacturing thin wire in consumer goods. The year-end stocks replenishment for compressor used in air conditioners, whose demand was robust in 2013, was expected to boost demand for enameled wire. Besides, the introduction of 4G in China also increases orders at relevant equipment manufacturers. The upcoming Chinese New Year holiday would not affect them much.