SHANGHAI, Jun. 12 (SMM) – 80% of Chinese copper wire rod producers expect their orders to remain at the current levels in June, according to SMM’s latest survey of 20 enterprises.
Despite the start of low demand season, most copper wire rod producers believe the possible cash problems arising from high copper premiums in China will drive some SMEs out of the market. This means orders will be more concentrated in the hands of large producers.
15% of producers predict June’s order books will decline, since they already reported falling orders from enameled wire and electric wire and cable producers. Production at home appliance manufacturers slowed, while goods delivery from wire and cable producers also eased down due to rising temperatures, which are believed to presage lower operating rates at wire rod makers in June
The remaining 5% of enterprises say their output may rise in June with new capacities expected to enter service. Older capacities that had been idle also resumed production in late May. However, these enterprises remain cautious towards consumption in the future.