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

SHANGHAI, July 14 (CBI China) -- A recent CBI survey of 24 major domestic copper cable producers (total capacity: 905 kt/yr) revealed the following insights:

    1) Operating Rates

    According to the survey, the average operating rate at the 24 producers was 71.8% in July, up 0.7% from June levels. Operating rates in China’s copper cable sector reported steady increases, even as other major copper semis industries enter a seasonal low consumption period. Most producers said orders have recently been increasing, and demand for copper cable is expected to grow further with the expansion of national infrastructure construction projects.

    2) Inventories of Raw Materials

    The survey indicated raw material inventories at the 24 copper cable producers as a proportion of monthly copper consumption during July was 18.7%, down 3.6% from June levels. As copper prices has fluctuated around RMB 40,000/mt since early June, producers were cautious towards any price increases, and most were replenishing stocks based on production needs, and would further reduce purchase volumes when price hit RMB 40,000/mt.

    3) Forecast of August Orders

    According to CBI survey, 58% of copper cable producers said August orders will be flat at July levels. They said July orders have experienced declines due to electricity restriction during summer, and August orders will be relatively low and flat at July levels. 21% of producers said August orders will increase slightly, as they received plenty of orders from electric power projects. The remaining 21% of producers believes August orders will decrease, as the demand will be worse during July and August than other months, and they predict orders will recover gradually from October and November.

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