SMM

       This week (August 1-7), the operating rate of SMM copper wire and cable enterprises was 69.89%, up 2.55 percentage points MoM, down 21.61 percentage points YoY, and 3.69 percentage points higher than expected. Among them, enterprises with a focus on power grid orders performed relatively well. Specifically, the copper price correction last week had stimulated scattered order growth from small and medium-sized enterprises, but with the recent rebound in copper prices, the growth momentum of some short-term orders had slowed down. On the inventory side, due to the sustained high copper prices, enterprises had consumed more of their existing raw material inventories, with restocking volumes being limited. This week, the raw material inventories of sampled enterprises decreased by 1.99% MoM, reaching 14,770 mt. Meanwhile, due to improved orders, the finished product inventories of some enterprises had decreased. This week, the finished product inventories of sampled enterprises decreased by 4.43% MoM, reaching 19,200 mt. Performance varied across industries, with the power sector standing out due to the boost from power grid orders, stable demand in the automotive industry, and continued weakness in the construction sector and other industries. Looking ahead to next week, the demand from State Grid will continue to drive the demand for copper wire and cable, but the demand for civil wire and cable in sectors such as construction will remain difficult to improve, which will still drag down the operating rate of the wire and cable industry to remain low. Therefore, SMM expects the operating rate of copper wire and cable enterprises to be 68.92% next week (August 8-15).