[SMM Morning Meeting Summary: Trump Considers Further Tariff Hike, Copper Prices Fluctuate at High Levels] On February 13, #1 copper cathode spot prices against the SHFE 2502 contract were quoted at a discount of 20 yuan/mt to a premium of 20 yuan/mt, with an average price on par with the contract price, flat WoW. According to SMM, inventory buildup continued in major domestic regions this week, but the pace of buildup has significantly slowed compared to last week.

According to SMM survey, the operating rates of copper rod makers using copper scrap averaged 47.56% in August, up 4.54 percentage points month on month and up 3.1 percentage points year on year. (Notes: SMM surveyed 43 producers with a combined capacity of 3.83 million mt/year.)

The orders of cable companies did not improve noticeably last week. The downstream buyers were cautious about placing orders due to strong bearishness.

Operating rates at copper rod producers using copper cathode as raw material rose 4.67 percentage points on the month and 10.54 percentage points on the year to 76.4% in May, according to an SMM survey of 52 producers with a total capacity of 12.73 million mt/year. The average operating rate of large, medium-sized and small enterprises was 78.19%, 75.32% and 60.21% respectively.

Entering May, the demand for copper from the real estate industry has not improved, and new orders for civil engineering have also begun to decline. Although demand for copper wire and cable improved in May compared to April thanks to the deliveries to power grid companies and exports, the bid solicitation volume was still low. This indicates that new orders from traditional power grids in the second half of the year are not optimistic.

Last week, wire and cable companies maintained normal production before stepping up production at the end of the week when copper prices dropped.