SMM data showed thatthis week, the operating rate of brass billet enterprises recorded 47.78%, down 0.26 percentage points WoW, with the industry overall still at a medium-weak level. Inventory side, raw material inventories of sample enterprises were only 4.39 days; although slightly increased from the previous period, they remained at historically low levels, and the fundamentals of tight raw material supply did not change substantially. Finished product side, affected by slow release of downstream demand and a slowdown in cargo pick-up rhythm, finished product inventories rebounded slightly to 6.35 days WoW, and inventory digestion pressure accumulated.
Looking ahead to next week, the traditional September peak season has mostly passed, and demand for brass billet is polarizing: demand from traditional industries showed no significant improvement, with insufficient order support, while only high-end product segments performed relatively well in orders. However, due to high production barriers for high-end products, most small and medium-sized enterprises found it difficult to enter, and operational pressures on these enterprises continued to stand out. Notably, next week will gradually enter the stockpiling cycle before the National Day holiday, and downstream enterprises have periodic restocking demand.SMM expects the operating rate of brass billet to increase by 1.67 percentage points WoW to 49.45% next week.However, it should be noted that under the current high copper prices, enterprises' capital occupation costs increased, and coupled with persistent tight raw material supply constraining production, these dual factors will limit the rebound in the industry's operating rate. In the short term, the industry is expected to remain in the doldrums.
