Order Momentum Cooled but Underlying Demand Remained, Brass Billet Industry Operating Rate Expected to Maintain Mild Performance [SMM Brass Billet Market Weekly Review]

This week (3.27-4.2), the operating rate of the brass billet industry came in at 55.16%, rebounding slightly by 0.77 percentage points MoM, with the industry as a whole maintaining a mild trend. Robust demand from downstream refrigeration and heat dissipation sectors provided strong support, while active downstream cargo pick-up for order delivery also drove a slight drop back in finished product inventories at copper billet enterprises. Looking ahead to next week (4.3-4.9), order momentum is expected to cool somewhat from the initial period after the Chinese New Year, but the refrigeration sector will still provide support, and large enterprises will maintain active production. Considering multiple factors, SMM expects the industry's operating rate to edge up 0.32 percentage points MoM to 55.48% next week, with overall operations remaining mild.