Lack of orders hindering ramp ups among Chinese copper fabricators, sources say

With a gradual lifting of transportation and travel restrictions in China and workers returning to their posts after being quarantined, copper fabricators in the country have slowly begun to resume operations. But a lack of downstream demand is hindering the move to ramp up production, market sources told Fastmarkets.

The provincial governments of Guangdong, Zhejiang and Jiangsu, China’s major copper consuming hubs, gave approval for local companies to resume production from February 10 at the earliest after the central government enforced an extension of the country’s Lunar New Year holidays in a bid to prevent the spread of novel coronavirus (2019-nCoV) in the country.

Cross-provincial transportation restrictions coupled with a lack of workers were the two major obstacles that producers faced when initially ramping up production to normal levels following the extended holiday break. But now their top concern is weak demand from end users, which is still recovering from a...

Published

Sally Zhang

February 27, 2020

04:45 GMT

Shanghai