Operating Rates Of Key Copper Rod Producers Using Copper Cathode

The operating rates of key copper rod producers using copper cathode averaged 68.97% last week (August 25-31), an increase of 0.26 percentage point from a week earlier. Last week's recovery in operating rates was mainly due to the production resumption from maintenance at a copper rod company in central China. Excluding this company, the actual industry operating rate dropped. In terms of consumption, orders were poor last week, and some copper rod companies using copper cathode as raw materials reported high finished product inventories.

High copper prices and month-end issues kept downstream buyers cautious. Copper rod companies mostly scheduled production for orders on hand during the week. New orders were sluggish, and they were worried about the upcoming traditional peak season. The price spread between copper rod produced with copper cathode and with copper scrap expanded further last week. According to SMM data, the price spread stood at 1,270 yuan/mt on Thursday. The price advantage of copper rod produced with copper scrap impacted consumption of copper rod produced with copper cathode.