SHANGHAI, Jan. 3 (SMM) - The average operating rate at 23 Chinese wire & cable producers surveyed by SMM fell in December, Shanghai Metals Market survey finds.
The rate fell to 78.03% during the last month of 2016, down 2.72 percentage points year-on-year and 10.1 percentage points month-on-month, according to SMM survey.
The decline in rate, which was in line with SMM expectation, is due mainly to low production enthusiasm at those producers, which already completed annual targets for 2016, SMM points out.
As SMM predicted previously, stock replenishment by end users advanced some consumption after copper price gains.
Moreover, falling orders, cold weather, and environmental factor also reduced their production interest at the last month of 2016, SMM survey shows.
SMM expects the average rate to fall further to 71.79% in January as producers will start the holiday for 2017 Chinese New Year holiday in late January.