SHANGHAI, Apr. 3 (SMM) – 50% of Chinese copper wire and cable producers expected orders to be stable in April with their copper consumption unlikely to rise significantly, SMM’s latest survey of 20 enterprises revealed.
Although the China State Grid Corporation started its second bid invitation in late March, it would take some time before wire and cable producers begin fulfill these orders. Enameled wire sector has entered high demand season after some 4S stores were out of stock due to limit on car purchases. However, market partipants believed the influence of vehicle purchase policy might not sustain, and showed less optimism for enameled wires outlook.
45% of producers surveyed by SMM expected a rise in April’s orders partly because some power cable traders might step up purchases after copper prices stabilized. Work on construction projects would fully recover in April with weather improving, driving up wire and cable consumption. For 2014 as a whole, wire and cable demand would be boosted by establishment of UHV transmission lines, and demand for enameled wire used for transformers might also be robust.
The remaining 5% of producers, mainly enameled wire makers, said sales would weaken in late April as the boom season arrived earlier than usual this year. These enterprises worried that demand from compressor and motor sectors might wane in April.