This week (March 20–26), the operating rate of SMM copper wire and cable enterprises was 70.77, up 0.24 percentage points MoM and down 2.09 percentage points YoY. Overall operating performance was stable, while market performance was relatively mediocre. During the week, the pullback in copper prices suppressed the release of new orders, but ample orders on hand and pending delivery orders supported basically stable production. By segment, new orders across downstream sectors were generally weak, with demand in the home decoration segment particularly mediocre due to rising plastic raw material prices. Industry production still mainly relied on orders on hand from the power and new energy sectors. Inventory side, the earlier pullback in copper prices drove concentrated restocking by enterprises, and raw material inventory fell 2.7% MoM this week as raw materials were mainly consumed from prior stockpiling. As for finished product inventories, the pullback in copper prices restrained downstream cargo pick-up, and finished product inventories therefore edged down 2.65% MoM. Looking ahead to next week, continued fluctuations in copper prices are expected to keep disturbing end-user procurement sentiment, while rising plastic prices will bring cost pressure. However, existing orders will continue to support enterprises’ baseline production schedules, leaving limited downside room for the operating rate. SMM expects the operating rate of copper wire and cable enterprises next week (March 27–April 2) to fall 1.54 percentage points MoM to 69.23, down 5.99 percentage points YoY.

In January and February, exports of copper cathode rod (HS codes 74081100 and 74081900) continued to strengthen, showing growth both MoM and YoY. The detailed data were as follows: According to customs data, in terms of total exports of copper wire rod, total exports of copper cathode rod (HS codes 74081100 and 74081900) in January increased 51.19% MoM and rose 83.78% YoY. In February, total exports of copper cathode rod increased 19.73% MoM and rose 160.07% YoY. In January 2026, exports of copper wire rod (HS codes 74081100 and 74081900) rose MoM, mainly due to weak domestic demand for copper rod in China, coupled with a concentrated release of power infrastructure demand in Southeast Asia, which together drove a sharp increase in copper wire rod exports. By specific export trade mode, processing trade with imported materials accounted for 66.3% of total copper wire rod exports in January 2026, processing trade with supplied materials accounted for 22.37%, Entrepot Trade by Customs Special Control Area accounted for 7.5%, and Ordinary Trade accounted for 2.81%. In February 2026, exports of copper wire rod (HS codes 74081100 and 74081900) continued to grow MoM, mainly driven by concentrated demand release from power grid upgrades and the new energy sector in Southeast Asia. Coupled with weak downstream demand in China during the Chinese New Year holiday, enterprises stepped up export efforts. By specific export trade mode, in January 2026, exports under processing trade with imported materials accounted for 50.95% of total exports, processing trade with supplied materials 38.73%, Entrepot Trade by Customs Special Control Area 8.46%, and Ordinary Trade 1.82%. By country, from January to February, copper wire rod was mainly exported to Thailand, Saudi Arabia, Vietnam, India, the Philippines, and Malaysia, with combined exports accounting for more than 70% of the national total. In summary, copper wire rod exports continued to grow from January to February, mainly benefiting from robust demand in the power grid and new energy sectors in Southeast Asia, coupled with weak downstream operating rates in China, prompting enterprises to actively expand into markets outside China to broaden demand. Although copper prices pulled back significantly in March, demand in the Middle East weakened due to geopolitical conflicts. In addition, as the main export destinations for China’s copper wire rod are concentrated in this region, and ocean freight rates have risen, copper wire rod exports were expected to be in the doldrums in March.

This week, the weekly operating rate of leading downstream aluminum processing enterprises in China rebounded 1.1 percentage points MoM to 64%.

According to SMM, supported by the pullback in copper prices, industry orders for enamelled wire improved, with the overall pace aligning with peak-season expectations. End-use demand recovered across the board, home appliance orders maintained peak-season performance, demand for power transformers remained steady, demand in the new energy sector gradually improved, and orders in traditional segments such as industrial motors and power tools also performed well. Against expectations of high production schedules among enterprises, the industry's operating rate is expected to continue rebounding to above 90%.

This Week (March 13–March 19), the Operating Rate of Machinery in the Enamelled Wire Industry Rebounded 3.8 Percentage Points WoW to.....

This week (March 6–12), the operating rate of SMM copper wire and cable enterprises was 66.59, up 5.69 points MoM and down 10.62 points YoY. The operating rate steadily rebounded this week, mainly due to a slight correction in copper prices that drove order release, coupled with support from concentrated power grid deliveries, though the current pace of order recovery remained weaker than in the same period last year. By sector, orders from the power segment continued to support enterprise production schedules, orders from the new energy segment also improved, while construction project orders remained weak, dragging on overall operating rates. Inventory side, the correction in copper prices drove enterprises to restock for rigid demand, but as enterprises maintained production schedules, days of raw material inventories fell 0.31 days MoM this week; for finished product inventories, the correction in copper prices boosted downstream consumption, but high copper prices still restrained end-user purchase willingness, so days of finished product inventories fell 0.41 days MoM. Looking ahead to next week, current orders on hand from the power and new energy sectors will continue to provide the main support for production scheduling. SMM expects the operating rate of copper wire and cable next week (March 13–19) to increase 3.45 points MoM to 70.04, down 4.49 points YoY.