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

SHANGHAI, Aug. 20 (SMM) -- A recent CBI survey of 21 major domestic copper cable producers (total capacity: 827 kt/yr) revealed the following insights:

    1) Operating Rates

    According to the survey, the average operating rate at the 21 producers was 75.9% in August, up 4.1% from July levels, and copper cable producers say current production remains stable. As copper prices have steadily risen, a portion of downstream manufacturers have increased purchases in anticipation of future price increases.  These advanced purchases are helping drive up operating rates at copper cable producers to some extent.  In addition, demand from the enameled wire sector has improved due to a recovery in the real estate, home appliance, and automobile sectors. 

    2) Inventories of Raw Materials

    The survey indicated raw material inventories at the 21 copper cable producers, as a proportion of monthly copper consumption during August, was 22.0%, down 3.3% from July levels. Copper cable producers increased raw material inventories based on stable orders, with the proportion equivalent to average levels from March to May, in response to rising copper prices. 

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