Guangdong, as one of the main concentration areas of copper processing in China, had a 2.2 million tonnes annual production capacity of copper rods in 2022, accounting for about 10% of copper rods' total in China, according to Mysteel's data. Besides, there are many big traders and the market is with fiercer competition than other regions. Thus, the Guangdong market has always been the focus. Entering the traditional consumption peak season in September-October, Mysteel gathered a specific on-site tour to 12 related enterprises to survey the supply and demand situation and the market outlook.
Based on the survey, Mysteel concluded as follows, but if you would like to get the whole report with more details of the views and these companies and join this kind of on-site survey, please do not hesitate to contact us via. xuzhongping@mysteel.com
1. The narrowing of profits for enterprises is common this year. Enterprises compensate for profits through various means, such as using financial instruments, reducing operating costs, or exploring new industrial areas.
2. Copper demand from real estate has significantly shrunk this year. The main demand support comes from the State Grid and municipal infrastructure projects. The concentration of the cable industry is increasing.
3. The supply of copper scrap and blister copper is tight. And the tense situation will continue judging from the scrapping and dismantling volume this year.
4. Market participants generally believe that the new energy sector has a positive market outlook and will be the main growth point in the future.
5. Market participants are generally not optimistic about consumption peak season this year and believe it will not be as good as in previous years. Premiums of long-term contract orders are expected to fall significantly next year.
Written by Edenlis Huang, huangting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com