Copper rod plants using copper cathode faced increased pressure amid poor consumption

SHANGHAI, Apr 21 (SMM)—Orders at copper rod companies using copper cathode as feedstock have been weak after the Qingming Festival holidays. Orders from enamelled wire producers decreased sharply as SHFE copper prices exceeded 68,000 yuan/mt market on Thursday. This together with weak demand from wires and cables has intensified pressure for copper rod plants.

Wire and cable: Downstream consumption has not improved significantly last week as the surge in copper prices grew downstream cautious sentiment. Consumption in April weakened. High prices in March have prompted power grid infrastructure projects to delay operations, limiting order placement. Besides, the lack of chips used in automobiles has also led to a decline in orders for auto makers.

Copper rods using copper cathode: From the feedback, consumption is far below expectations, as the fluctuation of copper prices restrains consumption. Many companies told us that their consumption performance last week worsened. In addition to the impact of copper rods produced with secondary copper, the lack of demand for wires and cables was the major reason. State Grid's investment fuelled market pessimism. According to our research, copper rod consumption will remain weak despite the high month of April.

Copper tube: There was little change in orders last week. The continued improvement of home appliances and air conditioners improved demand for copper tubes. The peak season will last until May.