SHANGHAI, Jun. 25 (SMM) – The average operating rate at China’s copper plate, sheet, strip and foil producers fell to 65.91% in May from April’s 66.29%, an SMM survey shows.
SMM undertook a survey of 21 copper plate, sheet, strip, and foil producers in China, with capacity totaling 1.06 million tpy.
Some enterprises were only accepting orders from those buyers believed to be able to make payments in a timely basis since bank loans are due for repayment in June. In addition, lower consumption of remodeling materials during the summer months lowered demand for copper strips used in LED lights, home appliance connectors, and other home hardware products. As a result, many producers were discouraged from producing at high operating rates.
Since July and August are low demand months for copper plate, sheet, strip and foil in overseas markets, exports of these products should show declines in June. Therefore, SMM predicts the average operating rate during June at these producers will fall to 60.78%.