SHANGHAI, Jan 9 (SMM) – SMM assessed processing charges of 12mm copper rods for electrical applications in December at 600-750 yuan/mt, and charges of copper rods for manufacturing enamelled wire at 750-900 yuan/mt in eastern markets. Both dipped on the month.
Copper rods processing plants in the east lowered charges last month, in hopes of meeting annual production targets and easing year-end cash flow issues, SMM learned.
High inventories of finished products in home appliances slowed downstream purchases of enamelled wire, and this also lowered processing charges of copper rods that used to produce enamelled wire.
For January, pre-CNY suspension may drive copper rod processors to lower processing fees, in order to clear out their in-plant inventories. This will weigh on offers of copper rods in January in eastern markets.
SMM expects operating rate across major Chinese copper rod processors to average 71.82% in January, down 3.87 percentage points from December.