SHANGHAI, Jul. 9 (SMM) – 76% of Chinese copper wire rod producers believe their orders will show limited changes in July, according to the most recent SMM survey of 21 enterprises.
These producers expect stable demand at the beginning of the low demand season as their downstream buyers are of strong competiveness and are unlikely to cut purchases significantly in the short term.
Some buyers may probably build some stocks should copper prices continue to rise during July, which will water down the influence from the offseason.
19% of producers, however, worry that weak consumption of electronics and home appliance during the traditional low demand months of July and August will impair demand for electronic wire and enameled copper wire. Moreover, slow growth in power grid investment and sluggishness in real estate market may also lead to a sag in copper wire rod demand from electric cable sector.
The remaining 5% of the surveyed foresee higher production in July as they had rejected some orders to keep operating rates low during June due to great financial pressure.