Copper plate and strip operating rates fell amid weaker demand from the power sector

SHANGHAI, Aug 11 (SMM) — Operating rates at copper plate and strip processors declined in July as demand from the electric power industry weakened, but construction of 5G stations and improved consumption of automobiles and communications gave support. Orders of copper foil were basically stable amid moderate demand from lithium-ion battery makers and semiconductor producers.

The average operating rate at Chinese copper plate, strip and foil producers stood at 64.99% in July, down 0.9 percentage point from June and 3.67 percentage points from a year earlier, according to an SMM survey of 21 producers with total capacity of 1.35 million mt.

The average raw material inventory/output ratio at copper plate, strip and foil processors came in at 13.23% in July, up 0.35 percentage point on month. Most of the processors stockpiled only as required as copper prices increased significantly in July.

SMM estimated that the average operating rate at copper plate, strip and foil processors is likely to inch up 0.5 percentage point to 65.49% in August as declined orders from wire and cable producers can be offset by increased demand from automobile and semi-conductor sectors.