Operating Rates at Copper Semis Plants Recovered and Topped Expectations in February

SHANGHAI, Mar 17 (SMM) - China’s copper semis output is estimated at 1.69 million mt in February, up 24.63% month-on-month and 37.28% year-on-year. Operating rates in the copper semis industry stood at 64.63% in February, up 23.48 percentage points month-on -month and 12.05 percentage points year-on-year.

In February, the average operating rate of the copper semis industry rebounded and slightly exceeded expectations, mainly due to the better-than-expected operating rates of the copper plate/sheet and strip industry as well as the copper pipe industry. Operating rates rose across copper semis plants, with the biggest growth in the copper pipe industry. The average operating rate of each segment is as follows: copper plate/sheet and strip (74.17%)>copper pipe (68.33%)> copper cathode rod (61.23%). The prosperity of the copper plate/sheet and strip industry was the highest, mainly spurred by the increase in orders from downstream transformer and new energy sectors. The better-than-expected operating rates of the copper pipe industry was attributable to increased orders placed by the home appliance industry after Chinese New Year holidays. The average operating rate of the copper cathode rod industry was the lowest as the high copper prices after CNY holidays drove downstream buyers to purchase copper scrap rod.

Overseas demand was lukewarm in February as consumers refrained from buying durable goods. Domestic demand, on the other hand, has been improving thanks to a string of policy stimulus and the peak season.