SMM Cu Survey: Operating Rates Fall at Domestic Copper Plate, Sheet, Strip and Foil Producers

SHANGHAI, August 2 (SMM) - A recent SMM survey of 19 major domestic copper plate, sheet, strip and foil producers (total capacity: 930 kt) revealed the following insights:
 
1) Operating Rates Fall 
According to the SMM survey, the average operating rate at the 19 copper plate, sheet, strip and foil producers was 58.1% in July, down both on a monthly and yearly basis.  Operating rates at small, medium and large-size producers fell by different degrees, with declines in output the greatest at medium-size producers (capacity of 20-50 kt/yr).  Producers in the survey told SMM that reduced orders during the summer low demand period is mainly behind the lower operating rates.  In addition, exports of copper plate, sheet, strip and foils were also lower due to the summer holiday season in the US and Europe.  Most of the surveyed producers expect these conditions to continue until late August.

2) Raw Material Inventories Fall
Based on the survey, the proportion of raw material inventory to output in July was 23.8%, down 11.7% from the 35.5% level in June.  This sharp decline was due mainly to the following two reasons.  First, concerns towards future orders caused producers to reduce raw material inventories.  Second, copper plate, sheet, strip and foil producers generally chose to stay out of the market in view of waning demand and rising copper prices. 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn