SHANGHAI, Jun. 5 (SMM) – The ratio of raw material stocks to total production at China’s copper wire and cable producers rose by 1.84 percentage points to 25.60% in May, an SMM survey of 21 enterprises shows.
Since physical copper prices remained at around 50,000 yuan per tonne during May, some wire and cable producers believed prices were unlikely to fall sharply in the short term, and thus replenished some stocks at this price level.
The falling copper premiums in China also allowed copper rod traders to return to the market. The increasing copper rod supply, combined with relatively ample money supply, enabled copper wire and cable enterprises to slightly increase raw material stocks.