Robust demand continued to improve orders at copper processing enterprises

Published: Mar 15, 2021 17:26
Orders  continued to pick up last week along with improved orders at electric wire and cable and enamelled wire. Overall consumption of copper rods produced with copper cathode was strong last week but some enterprises saw poor orders. Copper prices exceeded 65,000 yuan/mt with big volatility, keeping most downstream buyers purchasing as required.

SHANGHAI, Mar 15 (SMM)—Copper rods produced with copper cathode: Orders  continued to pick up last week along with improved orders at electric wire and cable and enamelled wire. Overall consumption of copper rods produced with copper cathode was strong last week but some enterprises saw poor orders. Copper prices exceeded 65,000 yuan/mt with big volatility, keeping most downstream buyers purchasing as required. The price spread between copper cathode and copper scrap remains favourable for consumption of copper rods produced with copper scrap. Producers remained cautious in raw materials purchases. Some producers told SMM that high copper prices have driven an increased number of companies to outsource production.

Copper tubes: The impact from high copper prices on new orders of copper tubes continued to weaken. Producers stepped up production amid stable demand last week. Air conditioning plants maintained high production schedules amid stable orders. Some big companies have kept their capacity utilisation rate above 90%. The air-conditioning industry has entered the peak season, and demand for copper tubes from downstream accessories, after-sales and engineering installations has also increased. Strong end-user demand and the peak season should bolster orders in the copper tube industry.

Copper plates, strips and foils: Copper foil companies have brisk orders amid stable growth in consumption of new energy, 5G, home appliances and electronics, leading to short supply. However, orders of copper plates and strips declined sharply against high copper prices, especially for low and medium-end plates and strips. New orders for copper plates and strips remained limited.

Enamelled wires: Orders at enamelled wire companies saw a significant rebound last week on the back of motors and transformers. Demand from home appliances and automobiles was also strong. Producers have returned to normal production last week. The amount of orders placed by customers depended on copper prices, with a large number of dip buyers. Supply is likely to fall short of demand should copper prices continue to fall.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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Robust demand continued to improve orders at copper processing enterprises - Shanghai Metals Market (SMM)