SHANGHAI, Sep 27 (SMM)—As it is approaching the National Day/Mid-Autumn Festival holidays, SMM has conducted a survey about 32 copper processors’ production arrangements for the upcoming holidays.
Among the 32 copper processors, 13 will operate as usual during the holidays, while the other 19 will take 6 days off on average. Tepid orders and pressure of finished product inventories dampened processors’ enthusiasm for stockpiling. 12 processors said that they would not stockpile for the holidays, while the others will restock raw materials that could guarantee production for about four days.
Here are the details of the SMM survey:
Wire and cable: Most of the wire and cable producers will be off for 2-4 days during the National Day holidays, as orders from the State Grid remained sluggish, and as tightened real estate control policies reduced new orders for wire and cable.
Enameled wire: Enameled wire producers who don’t need to rush to fulfill orders plan to take 3-4 days off during the National Day holidays. Meanwhile, those with many orders on hand told SMM that they would operate as usual during the holidays, and most of them have started to stockpile raw materials that could guarantee production for about five days.
Copper rod: Several large-scale copper rod makers told SMM that they would take a break or conduct maintenance during the upcoming holidays, as their inventories of finished products piled up amid sluggish downstream demand. Most of the copper rod producers will take up to eight days off for the holiday, longer than previous years, and some plan to undergo maintenance for 10 days.
Copper pipe: Large-scale copper pipe makers plan to take about four days off during the holidays, while small producers will be off for 8-10 days, slightly longer than previous years, SMM learned. Export orders of air conditioners were sluggish as overseas markets were still plagued by COVID-19. Less demand from air-conditioner makers prompted copper pipe producers to lower production.
Copper plate, strip and foil: Most of the copper plate, strip and foil producers plan to operate normally during the National Day holidays due to robust orders.
Brass rod: Most of the brass rod producers will take 4-5 days off during the holidays, basically the same as previous years, as their orders improved recently but were still lower than normal levels.
Copper scrap rod: A copper scrap rod producer in Jiangxi told SMM that they will take eight days off and return to normal production after the holidays, while some producers in Guangdong and Hebei whose orders have recovered to 80-90% of last year’s level will operate as usual and have already began to restock raw materials that could ensure production for 8-10 days.
