Operating rates at wire and cable producers across China stood at 83.4% in June, down 8.39 percentage points from the same month last year, an survey showed.
This is also down 7.55 percentage points from last month.
The month-on-month decline was because these producers accepted orders selectively on financial pressures towards the middle of the year. The Shanghai Cooperation Organisation (SCO) summit held earlier last month in Qingdao of Shandong province also accounted for the lower operating rates.
Amid slow season, operating rates are expected to dip further to 82% in July, down 1.42 percentage points from June and down 7.73 percentage points from a year ago. The month-on-month decline would be slower on eased cashflow concerns, we believes.