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[SMM survey] consumption continues to drop copper rod start-up rate significantly decreased
Jul 5,2019 23:06CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

SMM, July 5: according to SMM survey data, the operating rate of refined copper rod enterprises in June was 75.65%, down 5.41 percentage points from the same period last year and 6.05 percentage points from the previous month.

The month-on-month decline in refined copper rod-making enterprises in June was due to: first, poor terminal consumption: in addition to the good performance of sea cables and communication cables, which were improved by 5G pull orders, the downstream power cables, enamelled wire, and other orders performed poorly, especially because of the poor sales of household appliances, cars, transformers, and so on, and the order for enamelled wire dropped obviously, resulting in a decrease in the production and sale of copper poles. Second and half-year settlement, mainly to go to the warehouse: at the end of June, most enterprises have to carry out the half-year stage, mainly to withdraw funds, enterprises to maintain the pace of going to the warehouse, production reduced, at the same time downstream for the return of funds also reduced orders, resulting in copper rod enterprises production restrictions. It is worth noting that according to SMM research data, in June, the processing fee of copper rod for 8mm electrician in East China was 550 to 750 yuan / ton, and that for enamelled wire was 700 to 900 yuan / ton. At present, the market has entered the off-season of consumption ahead of time, some enterprises in order to stimulate consumption, a small reduction in enterprise processing fees in order to close the transaction.

In June, the raw material inventory ratio of refined copper rod making enterprises was 10.69%, which was 0.22% lower than that of the previous month. The decline in raw material inventory was mainly due to the month-on-month decline in the output of refined copper rod making enterprises in June, and the reduction in raw material procurement due to mid-year settlement; at the same time, it led to a decline in electrolytic copper inventory at the raw material end.

The operating rate of refined copper rod making enterprises is expected to be 71.96% in July.

According to SMM research, the operating rate of refined copper rod-making enterprises is expected to be 71.96% in July, a further decrease compared with the previous month. In July, electricity, real estate and other consumption fell further, the off-season market further appeared, orders for refined copper rods continued to decline, large enterprises also said that orders for all industries in the lower reaches of the river fell in July, and the operating rate of refined copper rods is expected to decline further in July.

(research enterprises: 36, production capacity: 8.11 million tons)

 

 

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