Operating rates at domestic copper plate/sheet and strip producers stood at 77.34% in May, down 0.16 percentage point on the month but up 8.23 percentage points on the year, according to an SMM survey of 34 producers with total capacity of 2.44 million mt/year.
The average operating rate of large, medium-sized and small enterprises was 80.69%, 61.59% and 83.44% respectively. While demand for lead frames used in the production of diodes and triodes was relatively robust, orders from electronic consumption, low-end copper strips, transformers, power fittings used in power infrastructure, major appliance, connectors and exports all missed expectations.
The downturn in downstream demand lowered operating rates of copper plate/sheet and strip producers. Therefore, the average operating rate in May 2023 was 2.53 percentage points lower than expected in the previous month. The average operating rate in May 2022 was only 69.11%. Lockdowns in many Chinese cities, logistics issues, closures and quarantine arising from public health problems in China in May 2022 led to raw material and manpower shortages as well as a backlog of finished product inventories at copper plate/sheet and strip producers. This resulted in a year-on-year growth of 8.23 percentage points.
