[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

[SMM Analysis: Soaring Copper Prices Widen Price Difference Between Copper Cathode and Copper Scrap; Increased Spot Shipments from Suppliers, Arbitrage Purchases Dominate Transactions] This week (7/20-7/23), the copper scrap market operated under a triple framework of low copper cathode inventory and high premiums, ongoing compliance constraints 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, before pulling back slightly to 106,170 yuan/mt at the end of the week, with a weekly gain of over 2,000 yuan/mt. Driven by the unilateral rise in copper cathode prices and the resilience of copper scrap in holding prices firm, the price difference between copper cathode and copper scrap expanded from 3,218 yuan/mt to 4,545 yuan/mt, briefly reaching a high of 4,800 yuan/mt during the week. The inherent price resilience of copper scrap was the core feature of the supply side this week.....

As the global green transition and the "dual carbon" goals advance further, the nonferrous metals industry is accelerating its shift toward low-carbon, smart, and high-end development. South China, as a core industry hub, boasts a well-established industry chain, outstanding resource endowments, and strong policy support, generating robust development momentum. Hosted by SMM, the is scheduled to be held from September 9 to 11 in Nanning, Guangxi. Centered on five key topics—price trends, market outlook, trade environment, policy direction, and low-carbon technology—the conference serves as a high-end industry platform for exchange and collaboration. 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The Group has four core industries: new materials (resources), motorcycle smart manufacturing, the low-altitude economy, and power and AI semiconductors, with strategic investments in commercial aerospace, new energy, and other businesses. It continues to strengthen its industry ecosystem advantages and consistently delivers valuable products and services to society. Currently, the Group's annual output value exceeds 100 billion yuan, with a workforce of more than 20,000. Geely Baikuang Group is an important member of the Fortune Global 500 company Geely Holding Group and one of the core enterprises in the new materials (resources) sector of Geely Technology Group. Its business spans multiple fields, including coal, electric power, aluminum, carbon, deep aluminum processing, and ecological manganese. Guangxi Baiming New Materials Co., Ltd. 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During the week (7.17-7.23), the operating rate of enamelled wire production equipment fell 2.07 percentage points WoW, and weekly orders taken pulled back 4.18% WoW. The industry was in a traditional off-season of demand, with weak support from end-user rigid demand, while a significant surge in copper prices directly suppressed downstream procurement pace, leading to a sharp drop in orders placed during the week, which directly caused a notable weakening in orders taken this week.

China's major copper cathode rod enterprises recorded an operating rate of 62.56% this week (July 17 – July 23), down 2.55 percentage points WoW, 0.65 percentage point lower than expected, and down 6.81 percentage points YoY. Copper prices surged late this week, and coupled with the market being in the traditional consumption off-season and high spot premiums, downstream procurement sentiment was weak, and copper cathode rod enterprises saw few new orders. To ease operational pressure, producers actively reduced production loads. The downstream wire and cable, and enamelled wire industries also weakened simultaneously. The off-season effect combined with rising copper prices suppressed order taking, leading to a rapid shrinkage in orders, further dragging down the operating rate of copper cathode rod. On the inventory side, high copper prices combined with weak orders led to lower raw material purchase willingness, and raw material inventory fell 2.08 percentage points WoW. Downstream demand remained persistently weak, and the pace of finished product cargo pick-up slowed, pushing finished product inventory up 3.83 percentage points WoW. Looking ahead to next week (July 24 – July 30), as the market continues to see weak new orders and the weak downstream situation persists, the production cut cycle for enterprises will be prolonged. SMM expects the operating rate of copper cathode rod enterprises to decline by 3.67 percentage points WoW to 58.89% next week.