SHANGHAI, May 8 (SMM) – Operating rates in China’s copper rod industry will fall further in May, SMM expects.
SMM sees the average operating rate at 70.76% at 25 domestic copper rod producers in survey sample in May, whose total capacity is 6.11 million tonnes. About 72% of those surveyed expect consumption to hold stable this month, while another 24% are pessimistic over demand outlook.
The average operating rate was 71.55% in the survey sample in April, up 2.2 percentage points from March, but down 4.69 percentage points from a year ago.
On a monthly basis, the growth was mainly driven by large producers. Operating rates at SMEs declined due to financial strain. Copper rod producers expanded capacity excessively and consumption remained sluggish, reducing operating rate on a yearly basis, SMM explained.
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