May Operating Rate Pulls Back Slightly, June Ushers in Seasonal Weakness

Published: Jun 9, 2026 14:55

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According to SMM, the operating rate of the copper plate/sheet and strip industry in May 2026 was 76.55%, down 1.4 percentage points MoM and up 6.42 percentage points YoY. Of this, the operating rates for large, medium-sized, and small enterprises were 85.11%, 60.71%, and 69.67%, respectively.

The operating rate of the copper plate/sheet and strip industry in May pulled back slightly MoM, yet surged significantly YoY, with the overall production base staying elevated. Earlier, a concentrated release of market demand led to a substantial jump in orders taken by enterprises. The accumulated backlog of orders on hand was ample, and order visibility was sufficient, effectively supporting enterprises in maintaining a high-paced production schedule in May. End-use demand sustained a structurally positive trend: demand for electronic components and semiconductor lead frames performed steadily, while core downstream demand from NEVs, energy storage, and power transformers remained robust, providing strong support for industry production. However, entering mid-to-late May, new orders gradually declined and demand weakened marginally. The prior situation of shipment shortages and specification tightness largely subsided, and deliveries by enterprises gradually returned to a normal pace.

Inventory side, in May, the days of finished product inventories in the copper plate/sheet and strip industry rose to 5.02 days, rebounding slightly from earlier lows, with the overall inventory level returning to a normal range and the supply tightness largely eliminated.

According to SMM, the sluggish trend in new orders persisted in late May, coupled with high copper prices dampening downstream purchasing sentiment. The traditional off-season gradually set in, and overall market demand support weakened. Enterprises' previously ample orders on hand were largely consumed, and new orders could not sustain the high production pace, leading most manufacturers to scale back production plans. Overall, SMM expects the operating rate of the copper plate/sheet and strip industry in June to be 74.50%, down 2.04 percentage points MoM and up 7.73 percentage points YoY, with the industry's prosperity continuing to cool down.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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