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[SMM Analysis] the export situation continues to impact the demand for brass rods. Manufacturers are still pessimistic about the future.
Jul 14,2020 18:41CST
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Source:SMM
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SMM7 March 14:

The operating rate of brass bar enterprises in June was 64.07%.

According to SMM research data, the average operating rate of brass bar enterprises in June was 64.07%, down 0.64% from the previous month and 8.34% from a year earlier. The impact of the overseas epidemic on domestic exports continues. Orders from enterprises with export-oriented products such as plumbing and valves downstream of brass bars remain weak. The performance of the brass bar industry declined again in June, but the decline in operating rate narrowed from the previous month and is slowly bottoming out. Relatively speaking, large enterprises have a variety of product routes, or go to the high-end market, the overall production order performance is more stable.

In terms of raw material supply, overseas epidemic prevention measures were gradually relaxed in May, and imported scrap copper began to arrive one after another in May, coupled with copper ingots as a supplement, brass rod production is abundant in raw materials. For some high-end enterprises, they still prefer brass with better quality in Europe and the United States, and look forward to the early implementation of recycled copper standards, which are no longer subject to import approval restrictions. In addition, it is worth noting that the sluggish demand in the brass bar industry has led to a slower rise in product prices than in raw materials, resulting in cost pressure on enterprise procurement.

The operating rate of brass bar enterprises in July was 63.78%.

According to SMM research data, the operating rate of brass bars in July was 63.78%, down 0.29% from the previous month and 5.93% from a year earlier. There are repeated signs of the recent overseas epidemic, some areas are blocked again, and the delay in economic recovery will continue to drag down domestic export orders, superimpose copper prices back above 50,000, and curb downstream purchases. enterprises are pessimistic about the brass bar industry in July, and export-led products downstream believe that it is difficult to see opportunities for improvement in the second half of the year.

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