SMM

This week, the SMM survey covered the production and sales conditions of major medium and large copper rod enterprises in China. The comprehensive operating rate was 84.25%, down 0.37 percentage points WoW and 0.62 percentage points lower than the expected value (surveyed enterprises: 21, capacity: 7.83 million mt).

Copper prices fluctuated widely this week, and most enterprises saw sluggish new orders, significantly weaker than last week. However, due to strong support from previous production schedules and a generally normal shipment pace, some enterprises indicated that although current end-use consumption is hard to find support, downstream enterprises have relatively ample funds, leading to good shipment conditions. Therefore, the operating rate this week was still supported.

From the inventory perspective, enterprises reported a rising trend in finished product inventories. This week, the finished product inventories of major domestic copper cathode rod plants increased by 3.25% WoW, reaching 50,800 mt, while raw material inventories of copper cathode rod plants decreased by 4.99% WoW, recording 43,750 mt. Looking ahead, as many enterprises in the sample plan to arrange maintenance based on inventory conditions next week, the weekly operating rate is expected to be under pressure from inventory resistance and maintenance arrangements. The weekly operating rate of major domestic copper cathode rod enterprises is expected to decline to 79.29% next week.