SHANGHAI, Sept. 10 (SMM) – The average operating rate at copper wire rod producers rose 1.35 percentage points to 73.03% in August, and the rate is unlikely to rise markedly in September, the latest SMM’s survey indicates.

This was partly because some producers received more orders after liquidity eased in August. Moreover, some large copper semi producers suffered as banks tightened issuance of L/Cs for financing purposes, redirecting some orders towards better capitalized producers. A growing number of companies are looking to insure against payment delays and bad debt.

Copper wire rod producers retain only the narrowest level of optimism over consumption growth due to persistently tight liquidity in the market and uncertainties over rail and power grid investment. As such, the average operating rate at copper rod producers is expected to remain flat around 73.44% in September.

SMM surveyed 21 copper wire rod producers representing 4.07 million tpy in capacity.