SHANGHAI, Nov 14 (SMM) – SMM assessed operating rates across domestic brass rod producers at 66.61% in October. This is SMM's first assessment of monthly operating rates of brass rod plants in China.
October’s rate stood lower from a year ago, pressured by slow consumption from downstream air-conditioning, plumbing, and sanitary sectors as the housing market cooled. Orders from the plumbing and sanitary businesses fell 30% from last year, reported surveyed brass rod mills.
In addition, trade tension with the US shrank export orders last month, some mills in Guangdong province told SMM. As 70% of copper scrap as raw materials came from imports, some 25% additional tariffs on US-imported copper scrap effective from August 23 grew costs across domestic brass rod plants. This also reduced their operating rates in October.
SMM surveyed 27 domestic brass rod plants in provinces of Zhejiang, Guangdong, Anhui, Jiangxi, and Jiangsu, covering a capacity of 1.09 million mt.
