According to SMM data, the operating rates of brass billet producers continued to decline this week, dropping by 0.45 percentage points MoM to 48.87%, mainly dragged down by the persistent weakness in demand. On the inventory front, SMM sample data showed a dual decline, with days of raw material inventories decreasing by 0.14 days MoM to 3.74 days, and days of finished product inventories decreasing by 0.46 days MoM to 6.14 days.
Looking ahead to next week, with the center of copper prices continuing to decline, SMM expects a slight boost in consumer demand. However, it should be noted that the drop in copper prices has led some suppliers to hold back cargoes, which will pose difficulties for enterprises in procuring raw materials and subsequently affect the extent of the rebound in operating rates. Overall, SMM expects the weekly operating rates of brass billet producers to increase by 0.64 percentage points MoM to 49.51% next week.
