SHANGHAI, Mar. 27 (SMM) – China’s aluminum wire and cable exports surged in February on saturated domestic market and quicker payment by overseas buyers, Shanghai Metals Market has learned.
Outbound shipments of the materials soared 65% year-on-year to 6,982 tonnes in February. Of them, 5,675 tonnes were non-insulated steel-core aluminum stranded wire, cable, plaited bands and related products, while the remaining 1,307 tonnes were other non-insulated aluminum stranded wire, cable, plaited bands and related products.
China’s domestic market became saturated. Domestic buyers delayed payments against tightening liquidity, while overseas buyers were able to make quicker payments. This drove Chinese producers to ramp up exports.
Competition was heating up in overseas market as well. SMEs secured fewer orders as overseas buyers were more demanding in quality. Large wire & cable producers were confronted with the problem of homogeneous products. Rivals in Europe and the US were posing great threats. This should compel Chinese producers to focus on quality to grab market share.