Operating rates at copper rod producers are estimated at 71.27% in May, down 5.13 percentage points from the previous month. Entering June, it is still difficult to see a significant increase in real estate demand. Although there will be concentrated deliveries to the State Grid, cable companies may have completed part of the production plan ahead of schedule.
The weaker prosperity of the enamelled wire sector will also have a negative impact on the consumption of copper rods. In addition, the recent rally in copper prices and the price difference between copper rod produced with copper cathode and with copper scrap exceeding 1,000 yuan/mt have reduced new orders significantly.
According to the SMM survey, leading enterprises have slowed down their production pace at the beginning of the month, and many copper rod enterprises expressed concerns about the demand in June.
