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SMM Cu Survey: Operating Rates Edge Up at Domestic Electric Wire and Cable Producers

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SHANGHAI, Dec. 6 (SMM) &ndash; 
A recent SMM survey of 21 major domestic electric wire and cable producers (total capacity:&nbsp; 872 kt/yr) revealed the following insights:&nbsp;&nbsp; 
&nbsp; 
1) Operating Rates Edge Up 
According to the SMM survey, the average operating rate at the 21 major electric wire and cable producers in China was 79.1% in November, up 0.2% from October&rsquo;s 78.9%.&nbsp; The stable operating rates now experienced in the industry are due to the number of long-term contracts at most large electric wire and cable manufacturers, whose flexibility allows them to adjust output as orders change.&nbsp; Recently, orders received at those producers surveyed have dropped along with downstream producers&rsquo; need to collect the capital at the year&rsquo;s end, and depressed demand in North China in the colder weather.&nbsp; The condition will likely affect operating rates in the future.&nbsp;
2) Raw Material Inventories Increase Slightly 
The SMM survey shows raw material inventories were 30.7% of production in November, up slightly 0.2% from 30.5% in October.&nbsp; Producers in the survey told SMM that they would not&nbsp; make large purchases due to volatile copper prices, despite recent price declines, but if copper prices continue to fall, they may begin to build up inventories.&nbsp; In other news, purchase volumes of scrap copper fell since it had no significant price advantage and due to tight scrap copper supply.&nbsp;
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smm-cu-survey:-operating-rates-edge-up-at-domestic-electric-wire-and-cable-producers

SMM Cu Survey: Operating Rates Edge Up at Domestic Electric Wire and Cable Producers | SMM

SMM Cu Survey: Operating Rates Edge Up at Domestic Electric Wire and Cable Producers

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