[SMM analysis] Copper rod production capacity is increasingly concentrated, what is the trend of operation rate?-Shanghai Metals Market

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[SMM analysis] Copper rod production capacity is increasingly concentrated, what is the trend of operation rate?

Translation 10:29:25AM Nov 16, 2018 Source:Shanghai Nonferrous Metals Network

SMM, Nov. 16 / PRNewswire-Asianet /-

According to the Nonferrous processing Association, China's copper rod production in 2017 was about 7.7 million tons, accounting for about 53 per cent of China's copper production. At present, the current situation of the domestic copper rod industry has the characteristics of low technical barriers, relatively low input, short production cycle, large output value and so on. The phenomenon of overcapacity is the most serious in the copper processing industry. But now the domestic copper rod industry new expansion projects are still emerging in endlessly, according to SMM understanding, only 2017 and beyond the copper rod industry new expansion capacity and planning as much as 3.5 million tons.

The expansion project includes a production project with an annual production capacity of 220000 tons of continuous casting and rolling copper rod, which was completed by Fujian Shanghang Sun Copper Industry on September 20. As well as the upcoming Zhongtian Technology under the Jiangdong alloy 220000 tons, Jiangtong North China (Tianjin) 150000 tons, Jiangtong 350000 tons copper rod production capacity is also in the planning; On the contrary, under the increasing vicious competition, the management difficulties and funds of small and medium-sized copper rod factories are becoming more and more serious, and the concentration of copper rod industry is increasing.

      

The operating rate of copper rod enterprises is increasing year by year.

Among them, the operating rate of copper rod is relatively stable (except that the operating rate is relatively low in February due to less production time during the New year). As can be seen from the figure above, the operating rate of large copper rod enterprises is on the rise. The operating rate of small and medium-sized enterprises has shown a downward trend as a whole, large enterprises are eager to occupy the market, the proportion of imported equipment production capacity has increased year by year, and the operating rate of large copper rod enterprises has also increased from 51.8% in 2012 to 74% in 2017. And is expected to continue to rise in the future; Among them, the performance in 2018 is particularly obvious, with the start-up rate of large enterprises basically above 80%, and the overall start-up rate in 2018 is also higher than the overall value from 2013 to 2017. Copper rod industry production capacity is increasingly concentrated, and because most of the SMM research enterprises are large enterprises, the start-up rate has increased significantly. Moreover, due to the fact that the price difference of refined waste is maintained at a high level of about 1600 yuan / ton, the supply and demand of the copper scrap market is booming, and the starting rate of copper scrap rod increased by 11.17 percentage points to 61.54% in October compared with the previous month.

According to SMM survey data, the opening rate of copper rod enterprises in October was 76.42%, down 3.71 percentage points from the previous month and up 3.99 percentage points from the same period last year. The reason for the increase is the implementation of deleveraging policy, the increase of production concentration, and the majority of large and medium-sized enterprises in SMM survey samples, so that the trend of growth over the same period last year; In October, there was a slight decrease compared with the previous month. First, most enterprises suspended production for 2 to 3 days during the National Day holiday, resulting in a reduction in production days, followed by poor terminal consumption, and the downstream industries, including household appliances, real estate, automobile, power, and so on, were not as expected. Copper rod enterprises are also pessimistic about the subsequent consumption, the main downstream cable enterprises in October start-up rate also showed a downward trend, the expansion of refined waste price difference at the same time drag down the fine copper rod start-up rate.

The operating rate of copper rod enterprises is expected to be 76.15 percent in November, down 0.27 percentage points from October. The main reason is that the follow-up consumption, including infrastructure, real estate and other projects, has not improved significantly, and the temperature has gradually dropped. Production in the northern region will be affected by the season, so the operating rate of copper rod enterprises has declined slightly.

(Shanghai Colored Network Mu Yaojuan)

Key Words:  Copper rod 

[SMM analysis] Copper rod production capacity is increasingly concentrated, what is the trend of operation rate?

Translation 10:29:25AM Nov 16, 2018 Source:Shanghai Nonferrous Metals Network

SMM, Nov. 16 / PRNewswire-Asianet /-

According to the Nonferrous processing Association, China's copper rod production in 2017 was about 7.7 million tons, accounting for about 53 per cent of China's copper production. At present, the current situation of the domestic copper rod industry has the characteristics of low technical barriers, relatively low input, short production cycle, large output value and so on. The phenomenon of overcapacity is the most serious in the copper processing industry. But now the domestic copper rod industry new expansion projects are still emerging in endlessly, according to SMM understanding, only 2017 and beyond the copper rod industry new expansion capacity and planning as much as 3.5 million tons.

The expansion project includes a production project with an annual production capacity of 220000 tons of continuous casting and rolling copper rod, which was completed by Fujian Shanghang Sun Copper Industry on September 20. As well as the upcoming Zhongtian Technology under the Jiangdong alloy 220000 tons, Jiangtong North China (Tianjin) 150000 tons, Jiangtong 350000 tons copper rod production capacity is also in the planning; On the contrary, under the increasing vicious competition, the management difficulties and funds of small and medium-sized copper rod factories are becoming more and more serious, and the concentration of copper rod industry is increasing.

      

The operating rate of copper rod enterprises is increasing year by year.

Among them, the operating rate of copper rod is relatively stable (except that the operating rate is relatively low in February due to less production time during the New year). As can be seen from the figure above, the operating rate of large copper rod enterprises is on the rise. The operating rate of small and medium-sized enterprises has shown a downward trend as a whole, large enterprises are eager to occupy the market, the proportion of imported equipment production capacity has increased year by year, and the operating rate of large copper rod enterprises has also increased from 51.8% in 2012 to 74% in 2017. And is expected to continue to rise in the future; Among them, the performance in 2018 is particularly obvious, with the start-up rate of large enterprises basically above 80%, and the overall start-up rate in 2018 is also higher than the overall value from 2013 to 2017. Copper rod industry production capacity is increasingly concentrated, and because most of the SMM research enterprises are large enterprises, the start-up rate has increased significantly. Moreover, due to the fact that the price difference of refined waste is maintained at a high level of about 1600 yuan / ton, the supply and demand of the copper scrap market is booming, and the starting rate of copper scrap rod increased by 11.17 percentage points to 61.54% in October compared with the previous month.

According to SMM survey data, the opening rate of copper rod enterprises in October was 76.42%, down 3.71 percentage points from the previous month and up 3.99 percentage points from the same period last year. The reason for the increase is the implementation of deleveraging policy, the increase of production concentration, and the majority of large and medium-sized enterprises in SMM survey samples, so that the trend of growth over the same period last year; In October, there was a slight decrease compared with the previous month. First, most enterprises suspended production for 2 to 3 days during the National Day holiday, resulting in a reduction in production days, followed by poor terminal consumption, and the downstream industries, including household appliances, real estate, automobile, power, and so on, were not as expected. Copper rod enterprises are also pessimistic about the subsequent consumption, the main downstream cable enterprises in October start-up rate also showed a downward trend, the expansion of refined waste price difference at the same time drag down the fine copper rod start-up rate.

The operating rate of copper rod enterprises is expected to be 76.15 percent in November, down 0.27 percentage points from October. The main reason is that the follow-up consumption, including infrastructure, real estate and other projects, has not improved significantly, and the temperature has gradually dropped. Production in the northern region will be affected by the season, so the operating rate of copper rod enterprises has declined slightly.

(Shanghai Colored Network Mu Yaojuan)

Key Words:  Copper rod