SMM Analysis: Three Factors That Slowed Production Recovery at Chinese Secondary Copper Rod Makers after Chinese New Year – SMM – Shanghai Metals Market
SHANGHAI Feb 10 (SMM) – SMM survey showed that the production at Chinese secondary copper rod makers will not resume until around the Lantern Festival, and it will take some time for the production to recover fully.
SMM found that the slow resumption was mainly due to the following three reasons. First of all, secondary copper rod makers across north China, including Henan, Hebei, Tianjin and Shandong, were not allowed to produce before February 20 for environmental concerns during the Winter Olympics.
Secondly, poor orders after the Chinese New Year also suppressed the production enthusiasm of copper rod makers.
Thirdly, the market is waiting to see how the VAT refund policy, which will take effect from March 1, will affect secondary copper rod makers, especially those in Jiangxi, where the producers enjoy VAT refund.
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