SHANGHAI, Dec 12 (SMM) –Operating rates across domestic brass rod producers increased 2.21 percentage points from October to 68.82% in November, SMM assessed.
The drive to meet annual targets pushed producers in Guangdong province to accelerate production in November. Those mills also stepped up exports ahead of potential US tariffs from the start of 2019.
More overseas purchases for Christmas Day buoyed operating rates last month. Some producers of high-quality brass rods are currently at full production, SMM learned. Year-end cash flow issues across producers capped overall increase in operating rates.
The rate in December is likely to average 69.57%, up 0.57 percentage point on the month. Higher output of home appliances at the year-end is likely to encourage operation across brass rod plants. However, overall downstream consumption will remain sluggish.
SMM surveyed 29 domestic brass rod plants in November, with capacity of 1.12 million mt.