According to SMM, in July, the operating rate of copper cathode rod enterprises was 67.01%, down 1.7 percentage points MoM, up 0.84 percentage points from expectations, and up 0.5 percentage points YoY. Among them, the operating rate of large enterprises was 78.83%, medium-sized enterprises 48.73%, and small enterprises 58.05%. In July, the operating rate of copper cathode rod enterprises stood at 67.01%, down 1.7 percentage points MoM but up 0.5 percentage points YoY (the operating rate in July last year was 66.51%). Overall, copper prices sustained an upward trend in July, compounded by the persistently high premium on spot copper cathode earlier. As the market entered the traditional consumption off-season, downstream end-user orders were already weak; high copper prices further suppressed purchase willingness, causing new orders for copper cathode rod enterprises to keep weakening. Against this backdrop, many copper cathode rod plants voluntarily arranged maintenance and production cuts, the industry-wide operating level pulled back, and output of copper cathode rod declined. By downstream sector, the two major consumption areas of wire and cable and enamelled wire also bore the impact of high copper prices; enterprises grew more cautious in stockpiling and proactively controlled raw material inventory, while industry orders contracted in tandem, and overall demand exhibited a clear seasonal pullback. In July, days of raw material inventories for copper cathode rod enterprises stood at 2.04 days, while days of finished product inventories were 3.66 days. Copper prices kept rising this month, making enterprises generally more cautious in raw material procurement. Most adopted a strategy of purchasing as needed and restocking only for rigid demand, with days of raw material inventories up 0.1 days MoM. Meanwhile, sluggish downstream wire & cable and enamelled wire demand and lackluster production enthusiasm impeded finished product destocking, pushing days of finished product inventories up 0.22 days MoM. The operating rate of copper cathode rod enterprises is expected to be 64.75% in August. Looking ahead to August, the copper cathode rod operating rate is expected to decline 2.26 percentage points MoM to 64.75%, and drop 3.62 percentage points YoY. Copper prices stay high, downstream fear of high prices continues to ferment, wait-and-see sentiment in the market remains thick, new orders are unlikely to recover significantly, and the industry's August operating may continue to trend weakly. On the foreign trade side, imported copper premiums have pulled back. Affected by July orders falling short of expectations, some copper cathode rod enterprises lowered their quotes and accelerated the delivery pace of long-term contracts, which is expected to drive a MoM rebound in August exports. However, incremental new orders from outside China are limited, making it difficult to reverse weak domestic demand.

According to SMM, the operating rate of copper cathode rod enterprises in July was 67.01%, down 1.7 percentage points MoM, up 0.84 percentage points from expectations, and up 0.5 percentage points YoY. Among them, the operating rate of large enterprises was 78.83%, that of medium-sized enterprises was 48.73%, and that of small enterprises was 58.05%. In July, the operating rate of copper cathode rod enterprises was 67.01%, down 1.7 percentage points MoM and up 0.5 percentage points YoY (66.51% in July last year). Overall, copper prices continued to rise in July, coupled with the long-term high premium pattern of spot copper cathode earlier. The market entered the traditional consumption off-season, and downstream end-user orders were already weak; high copper prices further suppressed purchase willingness, leading to a continued weakening of new orders for copper cathode rod enterprises. Against this backdrop, many copper cathode rod plants proactively arranged maintenance and production cuts, the industry's overall operating level pulled back, and copper cathode rod output declined. By downstream sector, the two main consumption sectors, wire and cable and enamelled wire, also bore the impact of high copper prices. Enterprises became more cautious in stockpiling, actively controlled raw material inventories, and industry orders contracted simultaneously, with overall demand showing a clear seasonal pullback. In July, the days of raw material inventories for copper cathode rod enterprises were 2.04 days, and days of finished product inventories were 3.66 days. With copper prices rising continuously this month, enterprises were generally cautious in raw material procurement, mostly adopting a strategy of purchasing as needed and rigid restocking, with days of raw material inventories increasing by 0.1 days MoM. Meanwhile, demand from downstream wire and cable and enamelled wire was sluggish, production enthusiasm was insufficient, and finished product destocking was hindered, driving days of finished product inventories up by 0.22 days MoM. The operating rate of copper cathode rod enterprises in August is expected to be 64.75%. Looking ahead to August, the operating rate of copper cathode rod is expected to fall by 2.26 percentage points MoM to 64.75%, and decline by 3.62 percentage points YoY. Copper prices stayed high, downstream fear of high prices continued to ferment, market wait-and-see sentiment was strong, and new orders were unlikely to recover significantly. The industry's operating rate in August may continue the weak pattern. On the foreign trade front, imported copper premiums pulled back. Affected by July orders falling short of expectations, some copper cathode rod enterprises lowered their quotes and accelerated the delivery pace of long-term contracts. Exports in August are expected to rebound MoM, but the growth in new overseas orders is limited, making it difficult to reverse weak domestic demand.

1. Procurement Conditions This procurement project, Operation and Maintenance 260805 Electrical Cable Procurement (AGSYYWHGXHD260810310007), is tendered by Ansteel Industrial Group (Anshan) Equipment Operation and Maintenance Co., Ltd. The project funds are self-raised, and it has met the conditions for procurement. An open inquiry is now conducted. 2. Project Overview and Procurement Scope 2.1 Project Name: Operation and Maintenance 260805 Electrical Cable Procurement 2.2 Conversion to Other Procurement Methods in Case of Procurement Failure: Not applicable 2.3 See the attached "Material List Attachment.pdf" for details of the procurement content, scope, and scale of this project. 3. Qualification Requirements for Bidders 3.1 Joint bidding is not allowed in this procurement. 3.2 Bidders shall meet the following qualification requirements: (1) Business license 3.3 Bidders shall meet the following registered capital requirements: Registered capital: 100 (10,000 yuan) and above 3.4 Bidders shall meet the following performance requirements: Provide at least one VAT invoice for wire and cable products issued from August 2023 to date, along with the corresponding scanned contract. 3.5 Bidders shall meet the following capability, financial, and other requirements: Financial requirements: See the attachment (if any) Capability requirements: See the attachment (if any) Other requirements: See the attachment (if any) 3.6 For projects subject to mandatory tendering according to law, the bid of a dishonest party subject to enforcement is invalid. 4. Obtaining Procurement Documents 4.1 All bidders wishing to participate shall log in to the Ansteel Intelligent Tendering and Bidding Platform at http://bid.ansteel.cn from 18:00 on August 10, 2026 to 08:00 on August 20, 2026 (Beijing time, the same hereinafter) to download the electronic procurement documents. Click to view the tender details: Tender Announcement for Operation and Maintenance 260805 Electrical Cable Procurement

Walsin Lihwa reported record Q2 and H1 profits, with Q2 net income reaching NT$9.043 billion (EPS: NT$2.04) and H1 net income hitting NT$12.628 billion (EPS: NT$2.85). All three business segments posted YoY growth in Q2 — stainless steel revenue up 12%, resources up 17%, and wire and cable up 9%. CEO Shyi-Chin Wang indicated that overall operations across the three main business units should remain stable in Q3. Looking ahead, global AI expansion and data center infrastructure development are expected to drive long-term demand for power transmission and distribution products, alongside the company's deepening involvement in liquid-cooling system materials.

In July 2026, the operating rate of secondary copper rod was 12.43%, lower than the expected 12.61%, down 0.18 percentage points MoM and 18.47 percentage points YoY. In July 2026, the copper scrap rod market operated under the dominant theme of the most-traded SHFE copper contract shooting up from 102,000 yuan/mt to above 106,000 yuan/mt, with a monthly gain exceeding 3,000 yuan/mt. Driven by the one-sided rally of copper cathode and insufficient follow-through from copper scrap, the price difference between primary metal and scrap widened from around 2,000 yuan/mt at the start of the month to over 4,000 yuan/mt at month-end, and at one point mid-month it even reached 4,800 yuan/mt. The price difference between copper cathode rod and secondary copper rod also hit the economic threshold of above 1,800 yuan/mt during the copper price surge. Under the dual framework of continued reverse invoicing compliance constraints and deepening high-temperature off-season, the market displayed a distinct polarization: structural tightness in supply, robust downstream arbitrage-driven purchases, and an off-season that was even weaker for physical consumption. Starting July 1, the new "three-in-one reverse invoicing" policy (with the prepayment rate of individual income tax for natural persons with annual sales of up to 600,000 yuan reduced to 0.25%) was formally implemented, further reshaping the regional supply landscape. On the supply side, the copper scrap market continued the structural tightness seen since 2026, with the underlying constraint still being the combined impact of the reverse invoicing policy and the phase-out of fiscal and tax subsidies: inspections in Hubei and other regions became stricter, and invoicing quotas in areas such as Shuyang, Jiangsu remained restricted. More critically, in July, Henan province abolished fiscal and tax subsidies while reverse invoicing could still be implemented. In Shuyang, Jiangsu, following the reverse invoicing controls, companies were notified in July of the cancellation of subsidies, and most scrap utilization enterprises had suspended operations to wait and see. Some unfulfilled orders from Jiangsu flowed to neighboring provinces, and available compliant and deductible copper scrap remained tight. Mainstream copper scrap invoice tax rates had exceeded 11%, rising to 12% in some areas, further driving up raw material procurement costs for enterprises. On the demand side, as the price difference between primary metal and scrap widened to above 3,800 yuan/mt, the economic viability of copper scrap became evident, and secondary copper rod enterprises' purchase willingness was remarkably robust. However, this robust purchase willingness was mainly directed at futures arbitrage rather than physical restocking. During the copper price surge, secondary copper rod enterprises widely adopted a hedging logic of "buy raw materials and sell futures" to purchase copper scrap. After securing enough for the day's demand during the morning session, they stopped quoting and did not chase higher prices to accept goods. However, such arbitrage-driven purchases initially did not fully translate into actual production restocking. The end-user wire and cable and enamelled wire industries were squeezed by the dual pressures of low copper cathode inventories with high premiums and high absolute copper prices, with pervasive fear of high prices. New orders became even weaker in the off-season. At month-end, secondary copper rod enterprises’ raw material inventory had reached a relatively ample level after mid-month hedging purchases, and the purchasing sentiment index dropped from 2.21 to a low of 2.03. The core market contradiction shifted from "spread dividend goes to arbitrage" to "ample inventory suppressing transactions." Overall, the core contradiction in the secondary copper rod market in July shifted from "copper price level" to "who gets the spread dividend" and "where compliant supply is located" — the price difference between primary metal and scrap of around 4,000 yuan/mt brought by the copper price surge was essentially captured by arbitrage funds; secondary copper rod enterprises’ operations of buying raw materials and shorting futures supported the circulation of copper scrap, but this was not transmitted to physical consumption. The cancellation of subsidies in Henan, Shuyang in Jiangsu, and other regions triggered a regional supply restructuring, further concentrating compliant cargoes in areas with a relatively stable policy environment. The outflow of orders from Jiangsu to neighboring provinces is a direct reflection of this restructuring. Looking ahead to August, if the price difference between primary metal and scrap can stabilize above 4,000 yuan/mt, the implementation standards for reverse invoicing become clearer, and quotas in some regions are marginally relaxed, this may drive some restocking demand. Otherwise, amid a combination of low copper cathode inventory, high premiums, and downstream users’ fear of high prices, the secondary copper rod market will continue with a weak equilibrium pattern of "suppliers sell when copper prices rise, rod enterprises hedge and buy, but both sides wait and see when prices are high." A genuine recovery in physical consumption will still need to wait for a correction in copper prices or a material improvement in end-user orders.

This week (Jul 31 - Aug 7), the SMM copper wire and cable enterprise operating rate registered 65.94%, down 1.24 percentage points WoW and down 1.4 percentage points YoY. During the week, copper prices shot up rapidly, driving up downstream raw material procurement costs, and market new orders contracted somewhat. End-use demand side, the power grid sector maintained steady ordering, new energy supporting demand remained resilient, while construction and other downstream industries stayed generally weak. Inventory side, affected by the rise in copper prices, wire and cable enterprises became more cautious in procurement, mostly restocking on rigid demand only, with raw material inventory down 3.32% WoW; downstream end-user cargo pick-up pace slowed, and finished product inventory rose 2.1% WoW. Looking ahead to next week, copper prices rose again at the end of the week, compounded by the traditional consumption off-season, and overall order performance across sectors remained weak, which will continue to weigh on the operating rate. SMM expects that next week (Aug 7 - Aug 13), the copper wire and cable operating rate will decline by 1.28 percentage points WoW to 62.38%, down 6.92 percentage points YoY.

The operating rate of China’s major copper cathode rod enterprises was 58.3% during this week (July 31 - August 6), down 1.77 percentage points WoW, 1.78 percentage points lower than expected, and down 10.56 percentage points YoY. Copper prices continued to rise this week, far exceeding downstream psychological acceptance levels, and new orders kept weakening. Only a few downstream clients made small additional purchases on concerns that copper prices would shoot up further, but the prevailing fear of high prices intensified, dragging the operating rate of copper cathode rod enterprises further down. Downstream industries such as wire and cable and enamelled wire were also weighed down by high copper prices, with operating rates continuing to weaken and overall demand remaining sluggish. On the inventory front, just-in-time procurement dominated, and raw material inventories fluctuated little, edging up only 0.35 percentage points WoW. The willingness to pick up cargo downstream did not improve noticeably, and due to weak demand, finished product inventories rose 1.65 percentage points WoW. Looking ahead to next week (August 7 - August 13), most enterprises that were under maintenance earlier will resume production, and production at enterprises that previously cut output has also stabilized. SMM expects the operating rate of copper cathode rod enterprises to increase by 1.13 percentage points WoW to 59.42% next week.

SMM Morning Meeting Minutes: Overnight, LME copper opened at $14,268/mt, touched a high of $14,270/mt shortly after opening, then consolidated and pulled back, falling to a low of $14,055/mt, before closing at $14,092.5/mt, a decline of 0.40%. Trading volume was 27,800 lots, while open interest increased to 254,000 lots, up 1,610 lots from the previous trading day, with bears adding positions. Overnight, the most-traded SHFE copper 2609 contract opened at 108,130 yuan/mt, reached a high of 108,250 yuan/mt, fell to a low of 107,310 yuan/mt, and finally closed at 108,160 yuan/mt, a gain of 0.36%. Trading volume was 100,100 lots, while open interest decreased to 214,300 lots, down 2,426 lots from the previous trading day, with bears reducing positions.

Overall, this week the aluminum processing industry remained in the doldrums under the dual pressure of deepening off-season effects and the aluminum price rebound. Export support faded, and recovery in domestic demand was slow. It is expected that the overall operating rate of the aluminum processing industry will maintain a weak trend in August.

SMM August 6 At 11:30 today, the futures closing price was 107,730 yuan/mt, up 500 yuan/mt from the previous trading day. The average spot premium was 80 yuan/mt, down 100 yuan/mt MoM. Today, secondary copper raw material prices rose 400 yuan/mt MoM. The secondary copper raw material sales sentiment index rose to 2.75, and the purchasing sentiment index rose to 2.06. The price difference between copper cathode and copper scrap was 4,025 yuan/mt, down 52 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,810 yuan/mt. According to the SMM survey, suppliers of secondary copper raw materials continued to ship goods, driven by rising copper prices. However, due to inconsistent implementation standards for "reverse invoicing" on tax-exclusive cargo across different regions, the price increase for tax-exclusive secondary copper raw materials was limited. Meanwhile, as the price spread between copper cathode rod and secondary copper rod widened, both end-user wire and cable enterprises and traders were actively placing orders. With sufficient new orders, secondary copper rod enterprises were also actively purchasing secondary copper raw materials in the market, resulting in very active market transactions.