Since March 4, 2026, secondary copper rod has shifted to a premium of 200-400 yuan/mt against the most-traded futures contract. Meanwhile, the price difference between copper cathode rod and secondary copper rod narrowed sharply from around 1,200 yuan/mt to about 300 yuan/mt

[SMM Copper Express] This week, the operating rate of SMM copper wire and cable enterprises was 66.59, up 5.69 percentage points MoM. The operating rate steadily rebounded this week, mainly due to a slight correction in copper prices that drove order release, coupled with support from concentrated power grid deliveries, though the current pace of order recovery was still weaker than in the same period last year. SMM expects the operating rate of copper wire and cable enterprises next week to increase by 3.45 percentage points MoM to 70.04, down 4.49 percentage points YoY.

This week (March 6–12), the operating rate of SMM copper wire and cable enterprises was 66.59, up 5.69 points MoM and down 10.62 points YoY. The operating rate steadily rebounded this week, mainly due to a slight correction in copper prices that drove order release, coupled with support from concentrated power grid deliveries, though the current pace of order recovery remained weaker than in the same period last year. By sector, orders from the power segment continued to support enterprise production schedules, orders from the new energy segment also improved, while construction project orders remained weak, dragging on overall operating rates. Inventory side, the correction in copper prices drove enterprises to restock for rigid demand, but as enterprises maintained production schedules, days of raw material inventories fell 0.31 days MoM this week; for finished product inventories, the correction in copper prices boosted downstream consumption, but high copper prices still restrained end-user purchase willingness, so days of finished product inventories fell 0.41 days MoM. Looking ahead to next week, current orders on hand from the power and new energy sectors will continue to provide the main support for production scheduling. SMM expects the operating rate of copper wire and cable next week (March 13–19) to increase 3.45 points MoM to 70.04, down 4.49 points YoY.

[SMM Copper Express] The correction in copper prices drove enterprises to restock for rigid demand, but enterprises maintained ongoing production scheduling, so days of raw material inventories at major wire and cable enterprises in China fell 0.31 days MoM this week; as for finished product inventories, the correction in copper prices boosted downstream consumption, but when copper prices remained in a high range, they still suppressed end-user purchase willingness, and days of finished product inventories at major wire and cable enterprises in China fell 0.41 days MoM this week.

【SMM Copper Cathode Rod Flash News】This week, the operating rate of the copper cathode rod enterprise industry increased by 10.45 percentage points WoW. The pullback in copper prices drove a surge in orders, enterprises accelerated their production pace, and operating rates at downstream wire and cable and enamelled wire producers rebounded steadily. Enterprises were expected to continue raising output and restocking next week, while downstream orders were expected to remain stable. SMM expected the operating rate to increase by 6.27 percentage points WoW to 79.19%.

After the Chinese New Year, the PV power generation project in the relocation resettlement area of Gaoluo Subdistrict, Ceheng County, Guizhou Province, quickly resumed work and production, carrying out final engineering work such as ground clearing and cable trench restoration, as well as grid connection commissioning. The project has a total installed capacity of 3,200 kW, with annual power generation expected to exceed 1.13 million kWh and annual output value of about 390,000 yuan. It will also provide 450 parking spaces in carports, and part of the revenue will be used for community management and to strengthen the collective village economy.

[SMM Weekly Survey of the Aluminum Downstream Sector: Downstream Aluminum Operating Rate Continued to Rebound to 61.9%, with High Prices Suppressing the Peak "Golden March" Season] This week, the weekly operating rate of leading downstream aluminum processing enterprises in China rose 2.4 percentage points MoM to 61.9%, overall extending the post-holiday recovery trend, with all segments rebounding MoM, and the industry as a whole entering a normal production pace.

【SMM Copper Cathode Rod Flash News】 Copper prices pulled back sharply in early trading today, effectively stimulating the concentrated release of rigid downstream demand. Coupled with the price difference between copper cathode and copper scrap remaining at a low level and the weakening substitution effect between refined and scrap copper, orders from downstream enterprises such as wire and cable and enamelled wire improved and restocking was concentrated, driving a surge in orders for copper cathode rod enterprises, with processing fees rising simultaneously.

This week (February 27–March 5), the operating rate of SMM copper wire and cable enterprises was 60.9%, an increase of 33.17 percentage points MoM and up 3.79 percentage points from the second week after work resumption last year on a YoY basis. This week, wire and cable enterprises had basically fully resumed operations, and production continued to recover. Demand side, power grid orders placed in a concentrated manner before the holiday entered a concentrated delivery period, accelerating enterprises’ production pace. In addition, after the Lantern Festival, workers gradually returned to their posts, and engineering and market orders were also gradually released. Inventory side, driven by restocking on the copper price pullback and production preparation, enterprises’ raw material inventory increased 7.01% MoM; finished product inventories fell 5.7% MoM, mainly because downstream players resumed operations after the holiday and gradually began to pick up goods, accelerating the drawdown of finished product inventories. Looking ahead to next week, as downstream ordering and cargo pick-up progress accelerates and enterprises fully resume production, SMM expects the operating rate of copper wire and cable to increase 5.21 percentage points MoM to 66.1% next week (March 6–March 12).

[SMM Copper Flash] This week, the operating rate at major domestic wire and cable enterprises increased by 33.17 percentage points MoM to 60.90%. This was mainly because earlier power grid orders gradually entered the concentrated delivery date, prompting enterprises to speed up production and stockpiling. In addition, after the Lantern Festival, as end-users gradually resumed work, engineering and market orders were gradually released, providing some support for orders. SMM expected that next week the operating rate of wire and cable enterprises would further increase by 5.21 percentage points MoM to 66.1%.