[SMM Copper Cathode Rod Flash] This week, the operating rate of copper cathode rod was down 2.49 percentage points WoW. High copper prices, coupled with the traditional consumption off-season, led to weak downstream demand and insufficient growth in new orders. Enterprises' production continued to shrink, and the purchase willingness from end-users of wire and cable and enamelled wire was significantly suppressed.

The operating rate of China's major copper cathode rod enterprises this week (Jul 24 - Jul 30) was 60.07%, down 2.49 percentage points WoW, up 2.49 percentage points from expectations, and down 11.66 percentage points YoY. Copper prices fluctuated at highs, coupled with the industry entering the traditional consumption off-season, downstream demand was generally weak, end-user rigid demand was insufficient, new orders growth for copper cathode rod enterprises was limited, and production continued to shrink. Downstream wire and cable and enamelled wire industries were also under pressure. Off-season sentiment combined with high copper prices suppressed purchase willingness, orders continued to shrink, further weighing on the operating load of copper cathode rods. Inventory side, earlier market raw material purchasing sentiment was weak, enterprise raw material inventories remained low for a long period; this week, some enterprises conducted restocking to meet rigid demand, raw material inventory up 1.77 percentage points WoW; but downstream willingness to pick up goods showed no improvement, persistently weak demand led to finished product inventory up 1.59 percentage points WoW. Looking ahead to next week (Jul 31 - Aug 6), enterprises that underwent maintenance earlier will gradually resume production, but some other enterprises will start production cuts, overall operating rate movement is limited. SMM expects the operating rate of copper cathode rod enterprises next week to fall 0.35 percentage points WoW to 59.72%.

The enamelled wire industry was in its traditional off-season, with weak support from end-user rigid demand. Along with sustained high copper prices, downstream fear of high prices persisted and enthusiasm for placing orders was insufficient, causing both operating rates and new orders to continue declining this week.

This week (7.24-7.30), the operating rate of enamelled wire industry machines was down WoW...

[SMM Copper Cathode Rod Flash] Last week, the operating rate of copper cathode rod producers fell 2.55 percentage points WoW. Copper prices shot up, coupled with the off-season and high spot copper premiums, resulting in sluggish downstream purchases and insufficient new orders, causing enterprises to proactively reduce production; weakening demand for wire, cable, and enamelled wire further suppressed production.

During the week of July 20-23, the copper scrap market operated under a threefold backdrop: low copper cathode inventory and high premiums, continued compliance restrictions from reverse invoicing, and a deepening high-temperature off-season. The SHFE copper closing price at 11:30 surged from 104,180 yuan/mt to 106,340 yuan/mt, then pulled back slightly to 106,170 yuan/mt by the end of the week