This week (1.31-2.6), the operating rate of SMM copper wire and cable enterprises was 27.36%, down by 15.48 percentage points compared to the last week before the Chinese New Year and 23.3 percentage points lower than the first week after the Chinese New Year in 2024 (due to differences in the number of working days). According to SMM, most enterprises in the industry resumed work as planned on the eighth day of the lunar calendar, while a few extended their holiday until the tenth day. With only two working days this week, the operating rate of copper wire and cable enterprises remained at a low level. During the holiday, some enterprises with ultra-high voltage orders continued production without interruption. Currently, new orders in the market have not yet materialized, and end-user enterprises are also gradually resuming operations. Enterprises generally expect new orders to emerge after the Lantern Festival. Additionally, the post-holiday rise in copper prices has dampened downstream customers' purchasing sentiment. From the inventory perspective, the current raw material inventory of enterprises is 23.73% lower than the first week after the Chinese New Year in 2024, while finished product inventories are almost unchanged. Regarding orders on hand, some enterprises reported receiving a significant number of power generation-related orders before the Chinese New Year, sufficient to meet their near-term production needs. Although power grid-related orders were tendered by the end of 2024, actual orders may not be placed until March. Overall, copper wire and cable enterprises are unlikely to return to normal levels in February. Before the Lantern Festival, as some workers are still returning to work, SMM expects the operating rate of copper wire and cable enterprises to rebound by 21.52 percentage points to 48.88% next week, though still 16.41 percentage points lower than the same period last year (the second week after the Chinese New Year).
