SHANGHAI, Oct. 24 (SMM) – The average operating rate at Chinese copper wire and cable producers rose 2.34 percentage points on the month to 80.69% in September, the latest SMM survey indicates.
Tightening liquidity and increasing competition drove a reshuffling in the wire and cable industry. Small producers suffered while larger, financially stronger producers expanded market share. As such, September’s rise in operating rates was disproportionately from larger producers.
As China’s investment in the power grid rose just 2.68% over the first eight months this year, there is but a remote chance that the 13% target set early this year might still be met. Investment in power generation projects declined 17.1% over the same period. The National Energy Administration indicates that China’s total electricity consumption rose only 2.7% in September, even less inspiring on the heels of August’s 1.5% decline. As such, power cable demand is unlikely to have improved much this month, so SMM expects the average operating rate at wire and cable producer to be 81.61%.
SMM surveyed 21 Chinese producers representing 1.08 million tpy in capacity.
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