The copper scrap market this week operated under the impetus of a strong macro-driven rally in copper prices. Futures and spot prices rose in tandem, but the intensifying divergence in sentiment and behavior between upstream and downstream participants along the industry chain lent the market a complex character best described as "price-driven transactions amid an unchanged weak supply-demand landscape.

This week, ferrous metals exhibited a pattern of initial weakness followed by strength. At the beginning of the week, after the U.S.-Iran peace talks failed to reach an agreement, the U.S. military announced it would impose a blockade on all maritime traffic in and out of Iranian ports, pushing international oil prices higher once again. Mid-week, disturbances from iron ore long-term contract negotiations intensified, with market rumors suggesting that restrictions on certain previously limited products had been partially lifted. Subsequently, news emerged of an unexpected shutdown at an Australian refinery, raising market concerns that a diesel supply deficit could trigger mine shutdowns, which in turn would lead to short-term supply tightening. Coupled with rising expectations of a second round of coke price increases, ferrous metals successfully rallied in the latter half of the week...

According to market reports, European stainless flat steel prices continue to rise sharply, but overall market sentiment remains cautious. Feedback from the Tube & Wire trade show in Düsseldorf suggests that geopolitical uncertainty, subdued downstream activity, and a mixed outlook for end-users are still weighing on confidence. Although demand has improved from the weak levels seen in 2025, real end-user activity remains disappointing.

[SMM Copper Wire and Cable News] This week, the SMM copper wire and cable enterprise operating rate was 69.43%, up 0.95 percentage points WoW. The stabilization in operating rates was mainly driven by orders from top-tier enterprises, while small and medium-sized enterprises continued to underperform. The power sector provided notable support, with steady demand from computing power, AI, and new energy sectors. Looking ahead to next week, high copper prices are expected to suppress new orders, and as earlier backlog orders are gradually completed, the operating rate is expected to pull back slightly. However, State Grid's successive order placements will provide support, and SMM expects the operating rate to decline 0.57 percentage points WoW to 68.86%.

[SMM Copper Wire and Cable Inventory] Regarding copper wire and cable inventory this week, enterprises' raw material procurement remained driven primarily by rigid demand. Some enterprises held bullish expectations for subsequent copper prices and restocked in small quantities across multiple batches at relatively low price levels, resulting in a 1.08% WoW increase in raw material inventory. On the finished product side, some clients also had bullish sentiment, and coupled with State Grid placing orders and picking up goods, finished product inventories decreased slightly by 1.74%.

This week (April 10–April 16), the SMM operating rate of copper wire and cable enterprises was 69.43%, up 0.95 percentage points WoW. The stabilization in operating rates this week was mainly driven by orders from top-tier enterprises, while orders and operating performance of small and medium-sized enterprises remained relatively weak. Meanwhile, rising copper prices continued to suppress new orders. By sector, the power segment provided the primary support, with the core driver being State Grid placing orders; wire and cable demand from computing centers, AI, and other sectors also performed well, and new energy sector orders remained steady, though overall support was weaker than that from the power sector. Inventory side, enterprise raw material procurement remained driven by rigid demand. Some enterprises held bullish expectations for future copper prices and restocked in small batches at relatively low prices, resulting in a 1.08% WoW increase in raw material inventories this week. On the finished product side, some clients also had bullish sentiment, and coupled with State Grid placing orders and picking up goods, finished product inventories decreased slightly by 1.74%. Looking ahead to next week, elevated copper prices are expected to continue suppressing the release of new orders, and as earlier backlog orders gradually near completion, the operating rate is expected to pull back somewhat next week. However, successive order placements by State Grid are expected to provide a certain level of floor support for the industry. Therefore, SMM expects the copper wire and cable operating rate for next week (April 17–April 23) to decline 0.57 percentage points WoW to 68.86%.