This week (1.17-1.23), the operating rate of SMM copper wire and cable enterprises was 42.84%, down 18.1 percentage points MoM, 12 percentage points lower YoY, and 8.84 percentage points higher than the week before Chinese New Year last year (mainly due to the impact of the statistical cycle). This week, copper wire and cable enterprises gradually entered the holiday mode, and copper consumption for production dropped significantly. Most enterprises produced only to replenish routine inventory, while downstream pickup volume was not ideal. Market expectations for orders after Chinese New Year remain cautious. By industry, most enterprises still hold optimistic expectations for orders from State Grid, but there are differing views on new energy power generation orders, especially PV orders. Some customers believe that 2025, as the final year of the 14th Five-Year Plan, will see a push for growth, while others think the current PV market is relatively saturated, and its growth rate may decline. Overall, the market in 2025 still faces many challenges. Next week (1.24-1.30), almost the entire industry will enter the Chinese New Year break, with only a few enterprises maintaining low operating rates. Therefore, SMM expects the operating rate of the copper wire and cable industry to drop by 40.29 percentage points to 2.55%, 1.55 percentage points higher than the Chinese New Year week last year.
