[SMM Analysis] the weakening of consumption and the interference of scrap Copper supply continue to weaken the opening rate of Brass Bar Enterprises in June.

SMM, July 12 / PRNewswire-Asianet /-

The opening rate of brass bar enterprises in June was 72.41%.

According to SMM survey data, the average operating rate of brass rod enterprises in June was 72.41 per cent. It was down 1.53 percentage points from the previous month. Among them, the operating rate of large enterprises (annual capacity ≥ 50,000 tons) was 69.74%, a small increase of 0.66 percentage points over the previous month, and that of medium-sized enterprises (20,000 tons ≤ annual capacity < 50,000 tons) was 72.8 percent, a decrease of 4.01 percentage points from the previous month. The operating rate of small enterprises (annual capacity < 20,000 tons) was 86.94 percent, a decrease of 4.04 percentage points compared with the previous month.

In June, the operating rate of large brass rod enterprises tended to stabilize, and the operating rate of small and medium-sized enterprises declined obviously, which was mainly affected by the strict investigation of environmental protection, and some small enterprises reduced or stopped production due to qualification problems. However, the overall performance of the start-up rate has declined, and there is no doubt that the pace of domestic consumption has entered the off-season, and enterprises have indicated that the decline in orders is obvious, but the decline in the opening rate of brass bar enterprises in June is not large, because the copper price was low at the beginning of the month, and the low price led to some enterprise orders. SMM research learned that in June, the finished product inventory of brass bar enterprises increased to a certain extent, and the low price also attracted some enterprises to hoard goods. In addition, in addition to the inventory of finished products, the raw material inventory of brass rod enterprises is also increasing, because the market is worried that the restriction on the import of scrap copper in July will lead to a substantial reduction in the import of scrap copper in the market, and the mood of holding copper scrap will be high. Although there is no shortage of imported scrap copper in the market at present, it is difficult for some small and medium-sized enterprises to buy low-priced scrap copper with tickets in the reaction market, so some enterprises think it necessary to do some inventory consideration.

The opening rate of brass rod enterprises is expected to be 70.06% in July.

According to SMM research companies expect orders, the brass rod enterprise operating rate is expected to be 70.06% in July, down 2.35% from June.

In July, the opening rate of brass bar enterprises continued to decline, mainly due to the impact of the off-season consumption, belong to the normal reduction, and affected by the contraction of scrap copper supply, the production profit of brass bar enterprises is expected to shrink seriously.

(research enterprises: 28, production capacity: 1.02 million tons).

(SMM Kwong Tze-si)