[SMM Analysis] the operating rate of copper strip and foil fell again in May.

On the 11th of SMM6, news:

According to SMM survey data, the operating rate of copper strip and foil enterprises in May was 71.6%, a decrease of 2 percentage points from the previous month and 7.99 percentage points from the same period last year.

In May, the starting rate of copper plate, strip and foil enterprises continued to decrease compared with the previous month, and it has declined for two months in a row. There is no sign of improvement in strip consumption, which is still the weakest piece of copper. Compared with the same period last year, it also maintained a large decline in April and May, continuing to drag down copper consumption. In May, strip consumption gradually entered the off-season, and orders from downstream electronic and electrical appliances and automobiles declined, the performance of high-precision copper strip was still better than that of brass strip, and the export business of terminals, such as electronics, household appliances, luggage and clothing, was affected by the trade war. It also led to a certain decline in orders. (research enterprises: 21, production capacity: 1.274 million tons)

In May, the raw material inventory ratio of copper plate, strip and foil enterprises was 18.33%.

In May, the raw material inventory ratio of copper plate, strip and foil enterprises was 18.33%, an increase of 0.56 percentage points from the previous month. Consumption continued to be depressed, enterprises only based on orders to maintain rigid demand procurement, inventory remained low, but due to the decline in production led to a small increase in raw material inventory ratio.

The operating rate of copper plate, strip and foil enterprises is expected to be 70.55% in June.

According to SMM survey, the operating rate of copper plate, strip and foil enterprises is expected to be 70.55% in June, a decrease of 0.61% from the previous month. In June, strip consumption entered the off-season, month-on-month decline will continue, continued weakness in consumption superimposed international trade tensions, enterprises to maintain more pessimistic expectations of consumption.

(SMM Wei Xue)