High Copper Prices with No Improvement in Demand, Weekly Cable Operating Rate Under Pressure [SMM Wire and Cable Market Weekly Review]

This week (May 22–May 28), the SMM copper wire and cable enterprise operating rate was recorded at 66.1%, down 0.77 percentage points WoW and down 12.57 percentage points YoY. During the week, copper prices stayed high, and as the traditional off-season gradually approached, overall industry demand showed no significant improvement. End-use demand side, only State Grid orders were heard to remain stable, with submarine cable and channel orders performing relatively well overall; medium- and low-voltage products for construction and real estate sectors continued to deliver mediocre performance. Inventory side, raw material inventory increased 2.06% WoW, mainly because some enterprises restocked when copper prices pulled back at the end of the week; finished product inventories increased 1.37% WoW, indicating that weakening demand slowed down end-user cargo pick-up. Looking ahead to next week, the copper price pullback at the end of the week is expected to drive some growth in new orders, boost this week's production schedule arrangements, and push up the operating rate. SMM expects the copper wire and cable operating rate next week (May 29–June 4) to continue rising 1.26 percentage points WoW to 67.36%, down 8.72 percentage points YoY.