Copper consumption Proved Resilient as Downstream Orders Picked Up Significantly

Wire and cable: Last week, wire and cable companies had normal production schedules. Lower copper prices boosted downstream demand. Although the overall orders were not robust yet, consumption has shown resilience. Entering March, construction and infrastructure projects have broken ground, and orders for photovoltaics and wind power have continued to improve. This, combined with policy support for real estate and infrastructure, is expected to bolster consumption.

Enamelled wire: Orders of enamelled wire increased remarkably last week. As the enamelled wire industry entered the peak season in March, new orders from enterprises have continued to grow, especially last week when the copper prices fell. And the downstream buying interest has increased significantly. However, some enamelled wire enterprises said that orders still fell short of the normal levels of a typical peak season. They have got rid of the pressure of high inventory as sales kept pace with production. And the operating rate of enterprises has continued to rise.

Copper cathode rod: The average operating rate of key copper cathode rod producers was 69.45% last week, an increase of 7.35 percentage points from the previous week. Downstream orders increased significantly amid falling copper prices, and the pace of delivery-taking accelerated, lowering the inventory of finished products at many copper rod factories. Several plants operated at capacity. In addition, orders from the downstream enamelled wire industry increased significantly last week, which also spurred the demand for copper cathode rods. On the whole, orders for copper cathode rods have rebounded significantly last week. Although the overall operating rate has not yet return to robust levels, it has shown a positive trend.