This week (May 2-8), the operating rate of SMM copper wire and cable enterprises was 83.49%, down 5.96 percentage points WoW, up 0.65 percentage points YoY, and down 3.97 percentage points from the expected operating rate. According to SMM, the new orders of enterprises this week weakened significantly WoW. The rise in copper prices after the holiday was the main factor inhibiting downstream enterprises from placing orders, and wait-and-see sentiment among end-users resurfaced. In particular, some customers had stockpiled in advance before the holiday, so downstream customers focused on digesting inventories this week, and the volume of orders placed decreased significantly WoW. Currently, enterprises' production mainly relies on previous orders on hand, and production can still be maintained at a relatively high level in the short term. By industry, the performance of various types of orders was relatively stable this week, with only PV orders weakening significantly compared to before. Orders from the two power grids, engineering construction orders, and submarine cable orders all remained stable. In terms of inventory, enterprises' raw material inventory was recorded at 18,330 mt this week, down 3.88% WoW, as stockpiling before the holiday was consumed. Finished product inventory was recorded at 18,690 mt, up 5.47% WoW, mainly due to the slowdown in cargo pick-up by downstream enterprises. Next week, as downstream customers' inventories are gradually digested, if copper prices do not rise unexpectedly, SMM believes that the operating rate of copper wire and cable enterprises will increase by 2.76 percentage points WoW next week (May 9-15), up 6.43 percentage points YoY.
