According to SMM, in May, the operating rate of copper cathode rod enterprises was 67.55%, down 3.64 percentage points MoM, up 0.13 percentage points from expectations, and down 2.65 percentage points YoY. Among them, the operating rate of large enterprises was 78.48%, medium-sized enterprises was 49.95%, and small enterprises was 64.5%. In May, the operating rate of copper cathode rod enterprises was 67.55%, down 3.64 ppts MoM and down 2.65 ppts YoY (70.26% in May last year). Overall, the performance of the copper cathode rod market in May was similar to that in April. As rising copper prices suppressed purchase willingness among downstream processing enterprises, a strong wait-and-see sentiment prevailed in the market, new orders at copper cathode rod enterprises continued to weaken, and order growth was significantly insufficient. Affected by low purchase willingness among downstream clients and a slowdown in the pace of cargo pick-up, finished product inventories at copper cathode rod enterprises continued to build up. Sluggish new orders, coupled with elevated finished product inventories, weighed on production, causing the overall operating rate of China's copper cathode rod enterprises to pull back significantly in May. By downstream sector, due to the rebound in copper prices, operating rates of wire and cable and enamelled wire enterprises also slipped to varying degrees. In May, days of raw material inventories at copper cathode rod enterprises were 2.06 days, and days of finished product inventories were 3.58 days. After copper prices rebounded, copper cathode rod enterprises turned more cautious in procurement, only purchasing as needed. When copper prices corrected, they restocked as needed, driving days of raw material inventories up by 0.21 days MoM. Meanwhile, orders from downstream wire and cable and enamelled wire enterprises showed mediocre performance, with demand continuing to weaken. The speed of picking up goods slowed down compared with the earlier period, pushing days of finished product inventories up by 0.23 days MoM. The operating rate of copper cathode rod enterprises in June is expected to be 66.59%. Looking forward to June, the operating rate of copper cathode rod enterprises is expected to decline by 0.96 percentage points MoM to 66.59%, and down 3.56 percentage points YoY. Although orders on hand can provide short-term support for production and stage-wise support for operating rates, as the market gradually enters the off-season, end-user demand for cables, enamelled wire and other sectors weakens, coupled with concerns over copper price fluctuations, it was originally expected that the operating rate would continue to trend weak. However, recent market conditions have changed. This week, a sharp pullback in copper prices stimulated concentrated price-based procurement by downstream buyers, leading to a significant increase in new orders for copper cathode rod enterprises, far exceeding earlier expectations. With marginal improvement on the demand side, the industry’s June operating rate has the potential to be revised upward and break through the previously pessimistic forecast.

[Geopolitical easing combined with manufacturing slowdown exert dual suppression, SHFE and LME aluminum prices plunge significantly] SMM maintains its forecast that inventory will drop to around 1.28 million mt by late June, and may further approach 1.2 million mt by the end of June or early July, providing some support for aluminum prices. However, the pressure from high domestic inventory remains relatively evident, and coupled with the currently dominant bearish macro sentiment in the market, domestic aluminum prices are expected to mainly be in the doldrums with adjustments in the short term.

Affected by the traditional consumption off-season and raw material price transmission, China’s deep-processed manganese products came under overall downward pressure this week. Products showed differentiated market performances due to distinct supply-demand fundamentals, with obvious linkage across the industrial chain.

Trading activity in China's electrolytic manganese market remained sluggish this week. After an earlier decline, mainstream spot prices have stabilized at a transaction level of 17,800 yuan per ton.

In June, secondary zinc oxide prices continued to rise. How will they perform going forward?

[SMM Copper Foil Monthly Operating Rate] In May 2026, the electronic circuit copper foil operating rate was 89.57%, up 1.14 percentage points MoM and up 13.96 percentage points YoY; the lithium battery copper foil operating rate was 90.68%, up 0.25 percentage points MoM and up 20.29 percentage points YoY. Affected by the grid connection deadline (June 30), energy storage projects experienced concentrated installation rush, together with high production schedules of power batteries, leading to steady release of lithium battery copper foil demand. Robust demand from the AI computing power industry drove the industry capacity upgrade toward high-end specifications, effectively boosting electronic circuit copper foil demand.