03
Mar
Year-end delivery of backlog orders supports China’s aluminium wire and cable operating rate, bringing it 1.27% higher
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The operating rate increased without being impacted by temperature on power grid construction. Instead, resilient demand for distribution network order pickups supported the operating rate. Additionally, the effort behind completing the delivery tasks by year-end ramped up the operations.
According to the Shanghai Metals Market, the operating rate precisely stood at 59.96 per cent, demonstrating a growth driven by large enterprises with an operating rate of 70.11 per cent. The medium-sized and small enterprises illustrated 56.32 per cent and 40.68 per cent operating rates, both witnessing 0.86 per cent and 5.08 per cent rise.
The significant rise in large enterprises’ operating rates was primarily backed by the scheduled delivery of backlog orders, keeping production high. On the other hand, small and medium-sized enterprises were supported by increased order profitability that significantly improved production sentiment and drove operation rates.
Stable orders for ultra-high voltage at the year-end due to increased investment in power grid projects bolstered the operating rate of the domestic aluminium wire and cable industry. According to data from the National Energy Administration, investment in power grid projects from January to October totalled RMB 450.2 billion, compared to RMB 373.1 billion during the same period of 2023, up 20.7 per cent Y-o-Y. At the same time, there were some weak or uncertain orders for PV modules and new energy grids, offsetting the growth rate.
Overall, China boasts a large market for aluminium wire and cables. The States Grid Corporation of China reveals that 37 UHV projects are complete, and 49 projects are under construction.
According to the Shanghai Metals Market, the operating rate precisely stood at 59.96 per cent, demonstrating a growth driven by large enterprises with an operating rate of 70.11 per cent. The medium-sized and small enterprises illustrated 56.32 per cent and 40.68 per cent operating rates, both witnessing 0.86 per cent and 5.08 per cent rise.
The significant rise in large enterprises’ operating rates was primarily backed by the scheduled delivery of backlog orders, keeping production high. On the other hand, small and medium-sized enterprises were supported by increased order profitability that significantly improved production sentiment and drove operation rates.
Stable orders for ultra-high voltage at the year-end due to increased investment in power grid projects bolstered the operating rate of the domestic aluminium wire and cable industry. According to data from the National Energy Administration, investment in power grid projects from January to October totalled RMB 450.2 billion, compared to RMB 373.1 billion during the same period of 2023, up 20.7 per cent Y-o-Y. At the same time, there were some weak or uncertain orders for PV modules and new energy grids, offsetting the growth rate.
Overall, China boasts a large market for aluminium wire and cables. The States Grid Corporation of China reveals that 37 UHV projects are complete, and 49 projects are under construction.
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