SHANGHAI, Jun. 30 (SMM) – Utilization rate at China’s major wire & cable producers was 78.48% in June, lower than a year ago, and producers were still not optimistic about production in July, SMM finds in its recent survey.
SMM surveyed 22 wire & cable makers representing 1.16 million tpy in capacity and found that their utilization rate dropped 3.22 percentage points on the year in June.
Producers told SMM that orders from the State Grid and China Southern Power Grid slipped, as China’s power grid investment fell by 6.3% in the first five months. Furthermore, the two power companies mainly invited bids for EHV and UHV systems where usage of aluminum alloy wire & cable increased, pushing down demand for copper wire & cable. Some producers have raised the ratio of aluminum alloy wire & cable production.
Demand for enameled wire, except that applied in transformers, also declined noticeably.
Most producers are now pessimistic about sales in July with the low demand season setting in, which may negatively affect their utilization rate.
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