SHANGHAI, Jun. 5 (SMM) – Operating rates at Chinese copper wire and cable producers averaged 81.27% in May, virtually unchanged from April, the latest SMM survey indicates.
SMM surveyed 21 copper wire and cable producers covering 1.078 million tpy in capacity, and found that average operating rate at large enterprises fell to 81.11% in May, down from April’s average of 83.37%. The rate at small producers, however, rose from 68.33% in April to 73.98%, and at medium-sized enterprises the average rose from 76.82% to 83.10%.
China Southern Power Grid awarded considerable contracts in March and April when copper prices were low, causing those bid winners to ramp up production in May.
Large enterprises had already been running at rates in excess of 80% since March, and limited new orders from construction projects other than power grid projects capped increases in their operating rates.
In addition, large producers rejected some orders from clients that they felt would have problems making payments.
Beginning in June, most enterprises that consume enameled wire will enter low demand seasons, so SMM believes operating rate at wire and cable producers will be lower at 80.71% in June.