Operating rates at Chinese brass rod producers dropped 6.23 percentage points MoM to 66.44% in January

SHANGHAI, Feb 22 (SMM)—Operating rates at Chinese brass rod producers dropped 6.23 percentage points from December to 66.44% in January, and this was 21.15 percentage points higher than a year ago, according to an SMM survey. Downstream buyers closed for the Chinese New Year (CNY) holiday at the end of January, and some brass rod makers suspended earlier for the holiday amid stricter COVID-19 restrictions, which led to the decline in January operating rates.  Orders at brass rod makers were moderate in January, with producers that offer lower prices or high-end products receiving stable orders.

SMM expects operating rates at Chinese brass rod producers to plunge 39.83 percentage points on the month to 39.83% in February, with a year-on-year increase of 14.77 percentage points as most of the producers were closed for CNY from February 7. Currently, copper rod producers are free from the COVID-19 pandemic’s impact, which contributed to the year-on-year rise.