SMM

       This week (6.13-6.19), the operating rate of SMM copper wire and cable enterprises stood at 73.26%, down 3.04 percentage points MoM and 7.15 percentage points YoY, falling short of the estimate by 2.51 percentage points. The main reason for the decline in the operating rate this week was the continued weakness in end-use market demand, with most enterprises maintaining production based on immediate needs. Meanwhile, copper prices remained in a high range, significantly higher than the psychological price level of enterprises, further suppressing downstream customers' purchase willingness and new order growth. This week, finished product inventories of sampled enterprises reached 21,190 mt, down 5.02% MoM. Due to the active or passive slowdown in production pace, finished product inventory levels pulled back. Raw material inventories reached 17,360 mt, up 1.58% MoM. Recently, price competition among copper rod enterprises has intensified, and copper cathode rod processing fees have continued to face pressure, prompting some wire and cable enterprises to conduct small-scale restocking of raw materials. By industry, enterprises generally hold a cautious attitude towards the prosperity of downstream industries, with the downturn in the construction industry being relatively more pronounced. Given that the weakness in downstream demand has not yet eased, SMM expects the operating rate of copper wire and cable enterprises to decline by 1.62 percentage points MoM to 71.64% next week (6.20-6.26), falling short of the same period last year by 11.2 percentage points.