Weaker demand, high scrap prices lower Nov operating rates at scrap-using copper rod producers -Shanghai Metals Market

Hot Keywords

  • Zinc
  • Futures movement
  • Aluminium
  • Silicon
  • Inventory data
  • Prebaked anode
  • Copper
  • Lead
  • Evening comments
  • MMi Iron Ore Port Index
  • New Energy Vehicle
  • Nickel
  • NEV
  • Production data
  • Market commentary

Weaker demand, high scrap prices lower Nov operating rates at scrap-using copper rod producers

Data Analysis 11:29:24AM Dec 14, 2018 Source:SMM

SHANGHAI, Dec 14 (SMM) – The average operating rate across Chinese copper rod producers that use scrap with raw materials fell 2.17 percentage points month on month to stand at 59.37% in November, SMM data showed.

Weaker demand accounted for the decline in operating rates in November. Increasingly colder weather shrank infrastructure construction starts in the north, while weak consumption grew inventories of finished goods across manufacturers of wire and cable, resulting in a substantial decline in orders for copper rods.

High prices of copper scrap also eroded production enthusiasm across scrap-using copper rod producers. The price spreads between copper cathode and copper scrap narrowed as copper prices slid. Copper scrap sellers held their offers firm.

In December, operating rates across scrap-using copper rod producers are expected to extend their decline to 58.18%.

With the government’s robust environmental-protection drive, scrap-using copper rod producer continue to face pressure. For raw materials, tighter grips over waste imports reduced supplies of copper scrap and kept prices at highs.

Price

more
#1 Refined Cu
Apr.19
49430.0
-170.0
(-0.34%)
Yangshan Copper Premium(Bill of Lading)
Apr.19
51.5
0.0
(0.00%)
Yangshan Copper Premium(Warehouse Warrant)
Apr.19
50.5
0.0
(0.00%)
Imported Cu Concentrate TC(Cu≥26%,Week)
Apr.19
67.0
-1.5
(-2.19%)
Imported Cu Concentrate TC(Cu≥26%,Month)
Mar.29
73.5
-6.0
(-7.55%)

Weaker demand, high scrap prices lower Nov operating rates at scrap-using copper rod producers

Data Analysis 11:29:24AM Dec 14, 2018 Source:SMM

SHANGHAI, Dec 14 (SMM) – The average operating rate across Chinese copper rod producers that use scrap with raw materials fell 2.17 percentage points month on month to stand at 59.37% in November, SMM data showed.

Weaker demand accounted for the decline in operating rates in November. Increasingly colder weather shrank infrastructure construction starts in the north, while weak consumption grew inventories of finished goods across manufacturers of wire and cable, resulting in a substantial decline in orders for copper rods.

High prices of copper scrap also eroded production enthusiasm across scrap-using copper rod producers. The price spreads between copper cathode and copper scrap narrowed as copper prices slid. Copper scrap sellers held their offers firm.

In December, operating rates across scrap-using copper rod producers are expected to extend their decline to 58.18%.

With the government’s robust environmental-protection drive, scrap-using copper rod producer continue to face pressure. For raw materials, tighter grips over waste imports reduced supplies of copper scrap and kept prices at highs.