This week (June 2 – June 18), the operating rate of SMM copper wire and cable enterprises was recorded at 69.27%, down 1.76 percentage points MoM and down 3.99 percentage points YoY. During the week, copper prices fluctuated at highs, suppressing downstream purchasing enthusiasm and weakening new orders, which weighed on operations; only some stock orders supported by the pullback in copper prices late last week limited the decline in the operating rate. End-use demand remained subdued overall, with orders across most industries showing mediocre performance; AI data center ancillary orders performed relatively well, while export orders also provided a certain level of support for enterprises. On the inventory front, after copper prices rebounded, enterprises prioritized consuming existing inventories, leading to a 2.88% MoM decline in raw material inventory. Enterprises slowed their production pace and prioritized consuming existing finished products, resulting in a 1.41% MoM decline in finished product inventories, mainly due to. Looking ahead to next week, no signs of improvement have yet emerged in the sluggish downstream demand. SMM expects the operating rate of copper wire and cable enterprises next week (June 19 – June 25) to decline further by 0.81 percentage points MoM to 68.46%, down 1.72 percentage points YoY.

[Consumption Weakens, Operating Rates of Galvanising Producers Decline]: The operating rate of the galvanising industry was 56.72% this week, down 0.77 percentage points WoW. Raw material side, zinc prices pulled back last week to a level more acceptable for downstream buyers, who actively priced and restocked. This week, downstream buyers mainly picked up goods, and zinc ingot inventories at galvanising enterprises edged up.

[SMM Rare Earth Weekly Review: Rare Earth Prices Overall Raised, Limited Pre-Holiday Transaction Follow-Through] Recently, affected by news of production cuts at scrap recycling enterprises, some industry participants expected Pr-Nd oxide supply to tighten. Suppliers raised their quotes, and low-priced supplies rapidly tightened. As of today, the Pr-Nd oxide price was raised to 717,000-720,000 yuan/mt.

[SMM Aluminum Weekly Review: Geopolitical Premium Recedes, Coupled with Hawkish US Fed, Aluminum Prices Fall Under Pressure Both at Home and Abroad]

This week (6.12–6.18), the operating rate of China’s brass billet industry stood at 52.17%, down 0.42 percentage points WoW. Copper prices continued to rally this week, while the traditional off-season set in. End-user purchase willingness from sectors such as home appliances, sanitary ware, and hardware remained subdued, leading to fewer new orders for enterprises, which still relied on prior backlogged orders to sustain production. As a result, operating rates edged slightly lower. Rising copper prices pushed up production costs, and some imported brass raw materials were already priced higher than finished billet prices in an inverted market, further squeezing enterprises’ processing margins. With the Dragon Boat Festival holiday approaching, some producers engaged in minor stockpiling, lifting days of raw material inventories slightly to 3.67 days. However, tight supply of secondary brass meant enterprises lacked the impetus for large-scale restocking. End-user transactions continued to be mediocre, downstream cargo pick-up remained slow, and days of finished product inventories climbed to 5.41 days, intensifying pressure to destock elevated inventories. Looking ahead to next week (6.19–6.25), orders are expected to stay on a weakening trend, with the fundamentals of high costs, soft demand, and inverted raw material prices unlikely to improve. SMM projects the operating rate will fall another 1.18 percentage points WoW to 50.99%, extending the pressure on industry production.

Jun 2026 Guangdong Region: Premiums in the region trended persistently lower this week, with increased arrivals and demand weakened by production cuts downstream during the Dragon Boat Festival. As of Thursday, high-quality copper was quoted at 200 yuan/mt, down 40 yuan/mt WoW; standard-quality copper was quoted at a premium of 140 yuan/mt, down 40 yuan/mt WoW; and SX-EW copper was quoted at a premium of 80 yuan/mt, down 40 yuan/mt WoW. The price spread for standard-quality copper premiums between Shanghai and Guangdong stood at Guangdong being higher by 160 yuan/mt on Thursday, a relatively small spread that triggered no interregional cargo transfers. SMM data indicated that as of Thursday, total inventory in Guangdong warehouses was 15,400 mt, up 3,000 mt WoW, with warrants totaling 3,100 mt, down 1,400 mt WoW. In detail: weekly warehouse arrivals were 17,700 mt, up 10,000 mt WoW, surpassing the annual average of 14,000 mt/week; smelter shipments increased early in the week ahead of contract expiry. Warehouse withdrawals were 14,300 mt, down 4,000 mt WoW, in line with the annual average of 14,200 mt/week, as production cuts downstream during the Dragon Boat Festival curtailed demand. Looking ahead to next week, post-holiday downstream demand is expected to gradually recover while the supply side remains tight; inventories are likely to decline again, with premiums expected to trend higher once more. (The above information is derived from market data collected and assessed comprehensively by the SMM research team. The information provided is for reference only. This article does not constitute direct investment, research, or decision-making advice. Clients should exercise prudent judgment and not rely on this as a substitute for independent decision-making. Any decisions made by clients are unrelated to Shanghai Metals Market.)