According to SMM's observations, since July, copper cathode prices have risen from 103,000 yuan/mt to 108,600 yuan/mt, an increase of over 6,400 yuan/mt, but the price of domestic bare bright copper wire (excluding tax) only rose from 90,000 yuan/mt to 91,700 yuan/mt, an increase of less than 1,800 yuan/mt

Jinlongyu (002882) disclosed its semi-annual report. In H1 2026, the company achieved operating revenue of 2.248 billion yuan, up 4.22% YoY; net profit attributable to shareholders of the publicly listed firm was 38.3885 million yuan, down 42.46% YoY; basic earnings per share were 0.0887 yuan.The decrease in the company's net profit was mainly affected by two factors: first, intensified competition in the cable market and high copper prices staying high led to a decline in the gross margin of this business segment; second, continued R&D and investment in capacity construction for the solid-state battery project resulted in a significant increase in related expenses.

SMM Analysis: Recently, the London Metal Exchange (LME) copper market saw a sudden short squeeze. Copper prices shot up, nearing record highs, and the premium (Back) of LME spot prices against the 3M contract once widened to the highest level in nearly five years...

This week (August 14-August 20), the operating rate of SMM copper wire and cable enterprises came in at 65.8%, up 3.55 percentage points WoW and down 3.08 percentage points YoY. Copper prices retreated from highs during the week, which briefly boosted downstream cargo pick-up willingness. However, bearish sentiment re-emerged in the later period, keeping downstream players on the sidelines. Overall orders only showed marginal recovery. The sharp rebound in the operating rate this week was also affected by the low base in the prior week.

[SMM Analysis: Copper Wire Rod Exports in July Pulled Back Nearly 30% MoM, High Copper Prices and High Premiums Dampened Foreign Demand] In July, total exports of copper wire rod (HS codes 74081100 and 74081900) decreased MoM but increased YoY. The specific data are as follows:......

This week, Shanghai spot copper premiums retreated from highs. At the start of the week, the market benchmark switched to the 2609 contract, pushing spot premiums nominally higher, but this did not reflect a significant improvement in supply-demand dynamics. As some warrant cargoes gradually entered the spot market, available spot supply increased, prompting suppliers to continuously lower quotes to facilitate transactions. During this period, the pullback in copper prices triggered downstream dip-buying for restocking and trading firms' purchase demand; however, incremental end-use demand remained limited, with low acceptance of high-premium cargoes. Meanwhile, high-quality copper and registered SX-EW copper were relatively scarce, further widening spreads among brands. SMM recorded social inventory in the Shanghai area at 83,100 mt as of Thursday this week, up 3,800 mt WoW from last Thursday; social inventory in the Jiangsu area stood at 27,500 mt, up 9,400 mt WoW. Looking ahead to next week, the previously arrived Russian copper has largely been absorbed by the market, and the concentrated impact of earlier import cargoes has eased. However, some non-registered copper delayed by port issues is expected to arrive in batches early next week, potentially adding to spot supply temporarily. On the demand side, downstream players remain focused on dip-buying and essential restocking, with high copper prices and elevated premiums continuing to limit buying amid rising prices. The month-on-month backwardation structure and tight supply of high-quality copper and registered SX-EW copper will continue to support quotes for certain brands. Overall, Shanghai spot copper premiums against the 2609 contract are expected to remain in backwardation next week, but the overall center could weaken further. If copper prices retreat significantly, dip-buying demand may provide some support to the downside of premiums.

[SMM Copper Cathode Rod News Flash] After copper prices stabilized, downstream bearish sentiment emerged again, and the growth rate of new orders for copper cathode rod slowed down. Some enterprises had originally planned to conduct maintenance this week, but affected by order recovery, they postponed maintenance to next week, and the operating rate of China copper cathode rod enterprises is expected to pull back 1.24 percentage points MoM next week.

[SMM Copper Cathode Rod News] During the copper price correction, copper cathode rod enterprises carried out essential restocking of raw materials, with raw material inventories up MoM. Downstream clients actively fixed prices and picked up goods to seize the price window, leading to a reduction in finished product inventories, which fell MoM.

[SMM Copper Cathode Rod News] This week, the operating rate of copper cathode rod increased by 1.89 percentage points WoW. Copper prices sharply consolidated and pulled back. Downstream demand previously suppressed by high prices was released in a concentrated manner, and new orders for copper cathode rod rebounded significantly. End-users of cable and enamelled wire made concentrated procurement for essential needs, which drove up the production load of enterprises.

The operating rate of major copper cathode rod enterprises in China this week (August 14-20) was 61.2%, up 1.89 percentage points WoW, up 2.19 percentage points from expectations, and down 11.3 percentage points YoY. Copper prices fluctuated sharply this week. During the rapid price pullback, downstream demand previously suppressed by high prices was released collectively, and new orders for copper cathode rod enterprises rebounded significantly, directly driving the operating rate upward. End-use industries such as cables and enamelled wire were also stimulated by the copper price pullback. Rigid demand clients engaged in concentrated procurement, and overall demand slightly recovered, providing strong support for copper rod enterprises' operations. On the inventory side, during the copper price pullback, enterprises took the opportunity to restock raw materials for rigid demand. Raw material inventory increased 1.36 percentage points WoW; at the same time, downstream actively priced and picked up goods during the copper price pullback, leading to destocking of finished product inventories, which decreased 1.91 percentage points WoW. Looking ahead to next week (August 21-27), after copper prices stabilize, bearish sentiment among downstream players reemerges, and the growth rate of new orders is expected to slow down. Additionally, some enterprises that originally planned maintenance this week have delayed their maintenance plans to next week due to the rebound in orders. SMM estimates that the operating rate of copper cathode rod enterprises next week will decrease 1.24 percentage points WoW to 59.96%.