SHANGHAI, Aug. 29 (SMM) – The average operating rate at China’s copper plate/sheet, strip and foil makers fell another 2.36 percentage points to 59.57% in July, its first dip below 60% since March, the most recent SMM survey shows.

Sales of new and existing homes continued to decline despite loosening home buying restrictions. This caused copper plate/sheet and strip demand from the home finishing and remodeling sector to plummet. Demand for copper strip used in connectors, transformers, and other electronics remained anemic in July as well.

At the same time, liquidity and other financial pressures distressed copper consumers and left many unable to pay on time. Copper plate/sheet, strip and foil producers responded by rejecting orders from some customers. Those producers that have kept output on par with or higher than in the same period last year said that they are losing money, but must remain in production to pay employees. Thin margins across the industry are a hurdle to growth.

As the offseason continues into August, most producers expect orders to remain light into late September, and predict average operating rate will drop to 58.13% in August.

SMM surveyed of 21 Chinese copper plate/sheet, strip and foil makers, representing 1.08 million tpy in total capacity.