Copper Prices Rise as Supply Tightens, Market Shifts to Premium Ahead of Chinese New Year

[SMM Copper Express] The operating rate of SMM copper wire and cable enterprises was 60.15% this week, up 0.69 percentage points MoM. At the beginning of the week when copper prices fell by the limit, overall cargo pick-up volume performed well, and new orders also increased, supporting enterprises in maintaining stable production. Specifically, previously won orders from State Grid continued to be fulfilled, and equipment cable orders grew simultaneously, providing the main source of orders for the industry.

[SMM Copper Express] Wire and cable enterprises mostly completed concentrated restocking during the copper price pullback this week. However, affected by wild swings in copper prices, enterprises maintained a cautious procurement strategy, generally adopting just-in-time procurement in batches. As a result, raw material inventory increased by 1.83% MoM. Finished product inventories decreased due to destocking as orders rose, down 2.05% MoM.