SHANGHAI, Jun. 25 (SMM) – 76% of China’s copper plate, sheet, strip and foil producers expect their orders to remain stable in June, the most recent SMM survey indicates.
These enterprises reported slight decline in sales in May, and told SMM the high copper premiums in China and tightening cash flow at halfway point of the year will dampen consumption.
In addition, demand of copper plate, sheet and strip used in electronics, home appliance connectors and switches is waning with low demand season for remolding sector setting in. However, these producers believe any decline in orders will be limited, as stocks at end consumers are already low.
24% of producers are pessimistic, arguing that tighter control over bank loans in the wake of Qingdao’s probe into metal financing will place greater financial pressures on enterprises. That, combined with the persistently high spot premiums in China’s copper market, is expected to undermine buying interest at end users.