SHANGHAI, Dec 21 (SMM) – Slow downstream consumption and high-level inventories of finished products depressed production enthusiasm across domestic producers of copper plate, strip, and foil in November, an SMM survey found.
Operating rate across those producers stood at 72.68% in November, down 0.88 percentage point from October, but up 2.18 percentage points from November 2017.
Uncertainties over China-US trade dispute deterred exports of electronic goods to the US, and this also accounted for the lower operating rate last month. Large-sized exporters received significant impact from declined foreign orders in November, SMM learned.
The rate in December is likely to average 71.29%, down 1.39 percentage point on the month. Some plants scheduled to end production earlier than usual this year, amid bearish outlook on downstream consumption in the first half of next year.
Raw materials inventory ratio at producers of copper plate, strip, and foil stood at 18.43% in November, down 1.13 percentage point from October. Sluggish downstream purchases, together with lingered pessimism for next year slowed producers’ restocking of raw materials. They mostly maintained on-demand purchase, SMM learned.
SMM surveyed 21 domestic producers of copper plate, strip, and foil in November, with capacity of 1.25 million mt.
