The operating rate of SMM copper wire and cable enterprises was 59.46% this week, up 0.75 percentage points WoW. Production this week was mainly carried out in an orderly manner based on previously retained orders, with the production pace largely consistent with the previous period and no wild swings observed, indicating strong overall production stability in the industry. By sector, orders from State Grid continued to be released, supplemented by scattered small orders in the market, providing additional support for production. However, copper prices hit another record high towards the end of the week, dampening downstream enthusiasm for cargo pick-up. Coupled with the approaching Chinese New Year holiday and weakening market demand, some enterprises have begun planning early holiday arrangements. Therefore, the operating rate is expected to decline by 2.82 percentage points WoW to 56.64% next week.

【SMM Copper Wire and Cable Operating Rate Continued to Decline】 According to SMM data, the operating rate of copper wire and cable enterprises fell 1.8 percentage points WoW to 58.95% this week. Copper prices hit new highs and remained elevated during the week, significantly dampening downstream purchase willingness. New orders continued to show weakness, and as the prices of orders on hand for most wire and cable enterprises remained inverted against current copper prices, operating meant facing immediate losses. Consequently, many proactively opted for production cuts and holidays to mitigate operational risks, further suppressing the industry's operating level. Additionally, many enterprises have planned 2-3 day holidays for the New Year's Day break. Coupled with strong downstream wait-and-see sentiment after the holiday, short-term purchasing and production lack recovery momentum. Therefore, SMM expects the industry's operating rate to decline further next week (January 2 - January 8).

【SMM Copper Wire and Cable Express】 This week, the operating rate for copper wire and cable edged up MoM but remained weak YoY. Orders showed no substantial improvement, and enterprises focused on capital recovery at year-end, with production remaining stable and orderly. Next week, the operating rate is expected to see a slight increase, but the lack of support from the demand side will limit the extent of the rise.

【SMM copper wire and cable operating rate】 This week, SMM's copper wire and cable operating rate rose 1.32 percentage points WoW. Copper prices fell back to below 86,000 yuan/mt, orders rebounded, but some enterprises remained cautious. Demand for automotive wiring harnesses improved. Next week is the last week of November, and enterprises will ramp up production for a final push. SMM expects the operating rate to see a slight rebound.

【SMM Copper Wire and Cable Operating Rate】 This week, the operating rate of copper wire and cable enterprises rose 2.66 percentage points MoM, driven by the rebound in copper prices and the release of demand from year-end sales promotions by enterprises. The operating rate is expected to increase slightly next week.

【SMM Copper Wire and Cable Update】 The operating rate of copper wire and cable enterprises this week was 61.91%, up 3.38 percentage points MoM but not yet returning to pre-holiday levels. This was mainly due to post-holiday production recovery, while high copper prices suppressed demand, leading enterprises to maintain just-in-time procurement, with some orders postponed due to price inversion between contract and spot prices. Looking ahead to next week, downstream acceptance of high copper prices is gradually improving, and some just-in-time orders are expected to be released, supporting the operating rate. SMM expects the operating rate to increase slightly.