[SMM Analysis] the operating rate of copper strip and foil fell by more than 8 per cent in June compared with the same period last year.

SMM7 12 / 12 / PRNewswire-FirstCall-Asianet /-

According to SMM survey data, the operating rate of copper strip and foil enterprises in June was 69.32%, down 8.22% from the same period last year and 1.85% from the previous month.

Since the plate and strip industry began to be weak in the second half of 2018, the opening rate has fallen sharply for four consecutive months compared with the same period last year, and the month-on-month improvement has not continued to weaken. Since July, the copper strip industry has entered the traditional off-season, the consumption of terminals such as electronics, home appliances, cars and other sectors have not performed very well, and the deterioration of the trade war has also affected some orders. Retail sales of broad passenger cars in China rose 4.9 per cent in June from a year earlier to 1.8 million units, the first year-on-year rise in 13 months, but the driving effect on consumption in the industry as a whole was limited, according to the Federation of Rivers. After the cancellation of new energy subsidies, the copper foil enterprises dominated by lithium batteries are greatly affected, and the processing fees are also maintained at a low level, which affects the production enthusiasm of enterprises.

In June, the raw material inventory ratio of copper plate, strip and foil enterprises was 18.41%, which was basically the same as that of the previous month.

So far in the second quarter, copper strip terminal consumption has remained weak, enterprises are cautious in preparing materials, according to order production, inventory levels remain unchanged.

According to the SMM survey, the copper strip and foil start-up rate is expected to drop slightly to 67.63% in July, down 1.69% from the previous month.

At present, the output of most copper strip enterprises has dropped to a relatively low level, and the rate of continued weakness has slowed down from the previous month, but the superimposed consumption of the trade war is weak, and enterprises are not optimistic about the market forecast for the second half of the year. There is a good chance that the situation will remain weak throughout the year.

(SMM Wei Xue)