[Cu] CBI Survey - Operating Rates at Copper Tube Producers

SHANGHAI, Apr. 14 (CBI China) -- A recent CBI survey of 19 copper tube producers (total capacity: 858 kt/yr; monthly copper consumption: 71.5 kt/month) revealed the following insights:

    1. Operating Rates

    According to the CBI survey, monthly copper consumption at the 19 producers was 58.35 kt during April, with average operating rates 81.6%, unchanged YoY, but up 10.3% MoM. March and April is the traditional peak season for copper tube production, and most of producers say operating rates will likely to remain at current levels until May. In addition, recent copper price increases will stimulate downstream orders to some extent.

    2. Raw Material Inventories

    The survey also revealed inventories of raw materials held by copper tube producers accounted for 12.4% of monthly copper consumption, down 8.2% MoM, but downstream raw material inventories have been fluctuating.  As copper prices inched up from low levels in early March, downstream inventories increased gradually as well, but inventories declined after copper prices rose significantly. Producers say increases in inventories pose risks from higher copper prices, so most will keep inventory level low in the near future and wait for markets to improve.

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