In November, the cable utilization rate in Jiangsu and Zhejiang decreased

In November, the cable utilization rate in Jiangsu and Zhejiang decreased This week, the Fubao Copper Research Group conducted a detailed investigation on the operating conditions of 93 large, medium and small-sized cable manufacturers in Jiangsu and Zhejiang. The results showed that in November, cable companies in Jiangsu and Zhejiang did not change much. The average operating rate was about 73.31%. Large enterprises relied on fixed shipping channels and their start-ups were maintained at around 80%. The operating conditions of SMEs were mixed. The majority of operating rates are still between 60% and 70%. Only 15% of poor start-ups are underway, and the number of local small-business enterprises is gradually increasing.

Orders: Orders in November showed a decline rather than a slight improvement in October. 71.9% of cable companies indicated that current orders were flat compared with October, 20.4% of companies indicated that the volume of orders declined, and only 7.7 percent of orders showed improvement. %. According to merchants, there are three main factors affecting the reduction of orders and stagnation: First, weak market demand and slowdown in economic growth are the main factors leading to the decline of orders; Second, due to fluctuations in copper prices, manufacturers are more cautious when purchasing raw materials. This has a certain negative effect on the production and operation of the manufacturers. Finally, it is hampered by the off-season of the “Year of Customs,” and it has been difficult to withdraw funds and other funds, which has caused a certain impact on business operations. At the same time, some companies rely mainly on trade exports to increase profits. They said that because of the European debt problem and the economic slump at home and abroad, foreign trade exports are difficult to do.

Inventory: "Purchase orders" has become the unanimous choice for most cable companies. Under a complex copper market, excessive inventory pressure will only increase operational risks. If there is a weak market demand, there will be no huge amount. The fixed order channels, most companies do not have a large inventory of willingness to avoid limiting the normal circulation of funds.

For the outlook, companies continue to be more pessimistic. Most said that the demand for downstream orders is still difficult to improve, and it is not optimistic about the trend of copper prices in December and next year. The construction of affordable housing has been declining year by year. It has started 10 million sets in 2011. More than 7 million sets will be built this year, and will not be lower than 5 million sets next year, and it may be around 6 million sets. Therefore, Fubao's research team believes that in the last month of 2012, as in the case of cable companies in Wuxi, the odds of an improvement in orders are small, but it will be until next year. The boost in market demand will still require a long time buffer, and the short-term fundamentals will not be conducive to the spread of good news; in addition to the fact that the current fiscal cliff problem has not yet been resolved, it is expected that copper prices will continue to fall if a unanimous agreement cannot be reached as scheduled.

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