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A recent survey by the Shanghai Metals Market of 20 major Chinese copper tube producers, with a total capacity of 1.2Mt/y, showed that operating rates in December increased to 73.41%, up 2.29 percentage points from November. The survey cited increased production in China's air conditioner sector as a reason for the uptick in utilisation rates at tube producers. The release highlighted a separate survey of air conditioner manufacturers, which showed a pattern of inventory restocking, with finished inventories increasing for four straight months. The SMM survey also revealed that producer's inventories of raw materials for the production of copper tube had fallen to 12.78% of production in December, down 2.92 percentage points from November. The reason given was tighter credit conditions at the end of 2012.

An October survey of 21 Chinese copper plate, sheet, strip and foil producers, with a annual capacity of 984,200t/y, showed that operating rates fell to 56.40% in October, down 1.13 percentage points from September. The survey also reported that raw materials inventories held by producers fell to 20.08% of production, down 4.61 percentage points from September. The survey cited sluggish demand from European and US markets as a factor weighing on PSSF demand, and said the orders ahead of the Christmas period were still low. The survey also highlighted producer pessimism about the copper price as a factor in lower raw materials stock holdings.

A recent survey by the Shanghai Metals Market of 21 major Chinese copper tube producers, with a total capacity of 1.24Mt/y, showed that operating rates in November rebounded to 71.12%, up 9 percentage points from October. The survey suggested that the bounce came as a result of weak production in October, rather than a particularly strong November. The commentary released with the survey stated that inventories of air conditioners, a major end use of copper tube, had declined to a historical low of 6.89M units in November. The survey also revealed that producer's inventories of raw materials had fallen in November to 15.7% of production, down 2.28 percentage points from October.

A survey by the Shanghai Metals Market of 20 major Chinese electric wire and cable producers, with total capacity of 978,000t/y, showed that the average operating rate fell to 76.59% in December, down 2.8 percentage points from November. The survey cited the falling temperatures in Northern China as dampening the demand for electrical wire for use in new infrastructure. The survey also reported that raw materials inventories at Chinese electrical wire producers had increased by 4.24 percentage points from November to 25.12% of production, stating that the fall in copper prices in December had tempted producers to increase stocks.

A recent survey by the Shanghai Metals Market of 21 major Chinese electrical wire and cable producers, with a total capacity of 990,000t/y, showed that operating rates in January decreased to 69.73%, down 6.86 percentage points from December. The survey cited a lull in major contracts for power cables prior to Chinese New Year as the reason for sluggish demand. However, stabilisation in the demand for enamelled wire was noted in January, whilst demand for electrical wire was estimated to have picked up. The SMM survey revealed that producer's inventories of raw materials had picked up prior to the Chinese New Year Holiday, with producer's raw materials holdings as a percentage of production up 9.46 percentage points since December, to 34.58%. The survey suggested easier cash flows and expectations of future copper price rises were reasons for the increase.

A survey of 21 major Chinese wirerod producers, with total capacity of 3.67Mt/y, showed that the average operating rate increased to 74.29% in November, up 5.27 percentage points from October. The survey cited an increased demand for wire from the power generation and construction sectors, as well as a roll off of October's seasonal effects as reasons for the increase. The overall level of utilisation in November 2012 was down 12.51 percentage points from a rate of 86.80% in November 2011. The survey also reported that raw materials inventories at Chinese wirerod producers had decreased to 13.98% of production, stating that most producers are not expecting large increases in the copper price, and with tighter cash flows, prefer to hold smaller inventories.

A recent survey by the Shanghai Metals Market of 21 major Chinese copper wirerod producers, with a total capacity of 3.4Mt/y, showed that operating rates in February fell to 57.8% as facilities slowed production during the Chinese New Year holiday. Wirerod producers reduced output as downstream demand from cable makers was weak in February, according to an SMM report with the survey. Many migrant workers return to their homes during the period, forcing factories to shut or reduce working hours. The SMM survey also revealed that producer's inventories of raw materials for the production of wirerod had increased to 22.6% of production in February, up 7.3 percentage points from January.

Shanghai Metals Market (SMM) reported that the average operating rates of copper cablemakers in China rose by 10 percentage points to reach 78.7% in August. Newly tendered contracts from the State Grid Corporation of China during July and August led to the production increase. Figures from the National Bureau of Statistics also indicate that cable output rose by 2.5% m-o-m to 3.53M km in August. In addition to this, an August survey of Chinese copper wirerod fabricators by SMM showed a 2 percentage point increase in the industry's average utilisation rate from the previous month, reaching 75%.

A Shanghai Metals Market survey of Chinese wirerod producers showed that operating rates at 21 domestic producers, with capacity of 3.5Mt/y, fell to 69.02% in October, a decrease of 2.33% m-o-m, and 14.4% y-o-y. The report cited the extended October national day holiday and maintenance at one large domestic wirerod producer as reasons for the decline. The release also showed that wirerod producers held lower raw materials stocks in October at 16.02% of production, down from 17.21% of production in September. Finally producers' inventories of finished goods increased to 15.80% of production in October from 5.58% of production in September as the above-mentioned large wirerod producer increased stocks prior to its maintenance shutdown.

According to a February survey from the Shanghai Metals Market, the operating rate at 21 major Chinese electrical wire and cable makers fell to 48.5%, a 21 percentage point fall from January. The drop in utilisation rate was the result of the Chinese New Year celebrations which fell in February this year. Operating rates are expected to rebound in March as cable makers increase production to fill contracts from China's State Grid Corporation. The survey also revealed that raw materials stocks rose by 15.3 percentage points in February to 49.8% of production in February.

A recent survey by the Shanghai Metals Market of 21 major Chinese copper plate, sheet, strip and foil producers, with a total capacity of 966,200t/y, showed that operating rates in February fell to 42%, as factories shut for the Chinese New Year holiday. Copper flat-rolled producers closed facilities as migrant workers returned to their homes and did not come back to work until after the lantern festival in late February. Survey participants were reporting better levels of demand post holiday as end-users such as the automotive industry and the lithium ion battery industry increased production. Survey participants expect utilisation to increase to around 60% in March.

A recent survey by the Shanghai Metals Market of 20 major Chinese wire and cable producers, with a total capacity of 1.007Mt/y, showed that operating rates in November hit an annual high of 79.37%, up 3.97% m-o-m. The reading showed a strong rebound from October but remains well below levels seen in 2011, when utilisation rates hit a high of 92.10%. The healthiest utilisation rates in the sector were for large producers (> 50,000t/y), whose rate was at 83.31% in November, well above small producers (<20,000t/y), whose reported utilisation rate was just 56.80%. Both large and small producers reported low raw materials stock levels at between 19% and 21% of production.