[SMM exclusive] scrap copper rod operating rate for 3 months in a row decline scrap copper consumption can rebound?-Shanghai Metals Market

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[SMM exclusive] scrap copper rod operating rate for 3 months in a row decline scrap copper consumption can rebound?

Translation 08:42:50PM Feb 20, 2019 Source:SMM

SMM2 20 June news:

At the beginning of the new year, we adjusted the sample. The original SMM scrap copper rod start-up rate survey involved a total of 17 enterprises, involving a production capacity of 1.06 million tons. This time, a total of four research samples were removed, involving a production capacity of 170000 tons. Of the four samples removed, two of them were about to shut down the scrap copper production line in August 2018. Considering the possibility of resuming production, we counted the production during the shutdown period at 0. It was removed because there was still no plan to resume production in 2019. The other two adjusted the raw materials after the Spring Festival, one replacing the raw materials with refined copper and the other with new scrap materials purchased from outside. Taking into account the tight supply of domestic scrap copper, and the proportion of scrap in production enterprises also has a downward trend, so the possibility of the above two enterprises to adjust the raw materials to scrap copper is very small, so it will be removed together. After the adjustment, the current scrap copper rod making enterprise start-up rate survey samples for 13, a total of 890000 production capacity.

According to SMM survey data, the operating rate of copper scrap rod enterprises in January was 50.31%, a decrease of 4.52% compared with the previous month.

In January, the starting rate of copper scrap rod-making enterprises continued to fall compared with the previous month. Shanghai copper price low wide shock in January, during which the refined waste price difference continues to be below 1000 yuan, the monthly average refined waste price difference is 637 yuan / ton, the lowest is only 361yuan / ton. Scrap copper prices continue to remain low, holders to cover goods to cherish sales sentiment is obvious, scrap copper consumption is in the doldrums. This year, the holiday time of scrap copper rod-making enterprises is concentrated from January 31 to February 11, the holiday days are longer, and some enterprises will carry out equipment maintenance and repair at the end of the year 3 to 5 days ahead of schedule, and the number of days to start work in January will be reduced, and the output will be affected. At present, some waste enterprises have shut down or changed the use of raw materials, the proportion of copper scrap in production enterprises also has a downward trend, and the capacity utilization rate of copper scrap rod industry is generally on the low side. On the one hand, due to the impact of import scrap copper policy, the supply of domestic scrap copper is reduced, scrap enterprises generally expressed concern about the supply of scrap copper. In addition, the strictness of environmental protection supervision also brings business pressure to waste enterprises.

According to SMM research, the operating rate of scrap copper rod enterprises is expected to be 36.00% in February, a decrease of 14.31% from the previous month. Due to the longer holiday time in the scrap copper industry, most copper scrap rod companies started work days in February at about 20 days, a reduction of 1 to 3 days, which directly led to a reduction in production. In addition, the upstream scrap copper suppliers have not fully resumed work, the supply of scrap copper is limited, and the terminal demand has not all returned. With the rebound of copper prices in Shanghai after the year, the gap between refined and scrap prices has gradually widened, reporting 1510 yuan per ton as of February 20. At present, the scrap copper market has become hot, such as after the Lantern Festival, the scrap copper market will be fully started, scrap copper consumption will pick up.

(SMM Wei Xue)

[SMM exclusive] scrap copper rod operating rate for 3 months in a row decline scrap copper consumption can rebound?

Translation 08:42:50PM Feb 20, 2019 Source:SMM

SMM2 20 June news:

At the beginning of the new year, we adjusted the sample. The original SMM scrap copper rod start-up rate survey involved a total of 17 enterprises, involving a production capacity of 1.06 million tons. This time, a total of four research samples were removed, involving a production capacity of 170000 tons. Of the four samples removed, two of them were about to shut down the scrap copper production line in August 2018. Considering the possibility of resuming production, we counted the production during the shutdown period at 0. It was removed because there was still no plan to resume production in 2019. The other two adjusted the raw materials after the Spring Festival, one replacing the raw materials with refined copper and the other with new scrap materials purchased from outside. Taking into account the tight supply of domestic scrap copper, and the proportion of scrap in production enterprises also has a downward trend, so the possibility of the above two enterprises to adjust the raw materials to scrap copper is very small, so it will be removed together. After the adjustment, the current scrap copper rod making enterprise start-up rate survey samples for 13, a total of 890000 production capacity.

According to SMM survey data, the operating rate of copper scrap rod enterprises in January was 50.31%, a decrease of 4.52% compared with the previous month.

In January, the starting rate of copper scrap rod-making enterprises continued to fall compared with the previous month. Shanghai copper price low wide shock in January, during which the refined waste price difference continues to be below 1000 yuan, the monthly average refined waste price difference is 637 yuan / ton, the lowest is only 361yuan / ton. Scrap copper prices continue to remain low, holders to cover goods to cherish sales sentiment is obvious, scrap copper consumption is in the doldrums. This year, the holiday time of scrap copper rod-making enterprises is concentrated from January 31 to February 11, the holiday days are longer, and some enterprises will carry out equipment maintenance and repair at the end of the year 3 to 5 days ahead of schedule, and the number of days to start work in January will be reduced, and the output will be affected. At present, some waste enterprises have shut down or changed the use of raw materials, the proportion of copper scrap in production enterprises also has a downward trend, and the capacity utilization rate of copper scrap rod industry is generally on the low side. On the one hand, due to the impact of import scrap copper policy, the supply of domestic scrap copper is reduced, scrap enterprises generally expressed concern about the supply of scrap copper. In addition, the strictness of environmental protection supervision also brings business pressure to waste enterprises.

According to SMM research, the operating rate of scrap copper rod enterprises is expected to be 36.00% in February, a decrease of 14.31% from the previous month. Due to the longer holiday time in the scrap copper industry, most copper scrap rod companies started work days in February at about 20 days, a reduction of 1 to 3 days, which directly led to a reduction in production. In addition, the upstream scrap copper suppliers have not fully resumed work, the supply of scrap copper is limited, and the terminal demand has not all returned. With the rebound of copper prices in Shanghai after the year, the gap between refined and scrap prices has gradually widened, reporting 1510 yuan per ton as of February 20. At present, the scrap copper market has become hot, such as after the Lantern Festival, the scrap copper market will be fully started, scrap copper consumption will pick up.

(SMM Wei Xue)