SHANGHAI, Oct. 30 (SMM) – The average operating rate at Chinese copper wire rod producers in September was 73.36%, flat on the MoM basis but down 2.66 percentage points YoY, SMM’s most recent survey of 21 producers indicates.
The average rate at large producers rose by 0.5 percentage point MoM. Large producers are able to resolve cash flow problem and more attractive for buyers compared to SMEs, which helped increase their orders and operating rates. In contrast, struggling SMEs received orders selectively, causing operating rates to decrease.
Demand for cable is unlikely to improve in Q4 due to slower power grid investment, and tightening credit from banks will exacerbate producers’ cash flow tightness. When combined with the Chinese National Day holiday, the average operating rate at copper wire rod producers should fall to 70.61% in October.
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