SMM

      This week (January 9–January 15), the SMM copper wire and cable enterprise operating rate was 55.99%, down 0.59 percentage points MoM and down 4.95 percentage points YoY. Specifically, copper prices largely stabilized during the week, market wait-and-see sentiment was strong, and although new orders improved slightly, overall levels remained relatively low with no clear signs of improvement; some small enterprises had already started early holiday breaks. By sector, high copper prices significantly suppressed demand across segments, with only the automotive industry orders remaining stable, providing some support to the sector's operating rate. Inventory-wise, influenced by the phased pullback in copper prices, some enterprises initiated necessary stockpiling, leading to a 0.65 percentage point increase in the raw material inventory ratio this week, reaching 12,330 mt. Finished product inventories showed a slight destocking trend; however, constrained by long payment cycles, the pace of enterprise destocking slowed down, and the finished product inventory ratio only decreased slightly by 0.19 percentage points MoM, recorded at 18,725 mt. The industry's current core strategy remains prioritizing destocking. Looking ahead to next week, the market lacks new demand drivers, and enterprises generally show low willingness for pre-holiday stockpiling. Most enterprises expect this year's Chinese New Year holiday duration to exceed last year's, and the industry as a whole maintains a wait-and-see sentiment, quietly awaiting further clarity in the post-holiday market situation. Therefore, SMM expects the copper wire and cable operating rate to drop 0.24 percentage points to 55.75% next week (January 16–January 22), with limited fluctuation in industry operations.