Hubei province, with 1.4 million tonnes of annual production capacity of copper rods in 2022, accounting for about 5% of the total in China, according to Mysteel's survey, has the most favorable policies for the resource recycling industry in China, so processing enterprises there continue to put new capacity into operation, especially the secondary copper rod ones. Besides, it is located in central China, which is very convenient to other places in China. Therefore, market participants pay a high level of attention to this market as Mysteel does. Then, Mysteel conducted an on-site survey on major copper rod and wire cable producers in Hubei.
According to the survey, Mysteel concluded as follows:
- Processing enterprises generally face losses but have various countermeasures, such as relying on government subsidy policies, appropriately reducing output, or using financial measures to compensate.
- Downstream enterprises still have demand but are constrained by excessively high copper prices.
- It is difficult to purchase raw materials. The competition in raw material prices among different regions is particularly fierce.
- The resource recycling industry policy in Hubei is more favorable than in other regions, but it is timeliness. Therefore, the constantly changing market landscape makes it difficult for market participants to grasp.
- Most enterprises have expectations for consumption, but there are differences in their expectations for copper prices.
Mysteel surveyed those companies from companies' brief information, operation situation (capacity, output, production line, raw materials, etc.), requirements, and market perspectives, and released a report with details. If you would like to get the whole report and join this kind of on-site survey, please do not hesitate to contact us via. xuzhongping@mysteel.com
Written by Edenlis Huang, huangting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com