This week (July 10-16), the weekly operating rate of SMM brass billet enterprises was 49.61%, pulling back slightly by 0.35 percentage points WoW, as the industry maintained a low-level operating pattern. The tight supply of recycled brass raw materials remained difficult to alleviate, procurement costs stayed high, and enterprises' restocking willingness remained weak. The days of raw material inventories for sample enterprises stood at 3.7 days, with the tight raw material turnover continuing to constrain production flexibility. This week, production of brass billets edged down slightly WoW. The traditional off-season characteristics in the downstream market became more prominent, with orders in refrigeration, sanitary ware, and hardware sectors weakening simultaneously. End-use demand lacked growth, and downstream purchasers generally maintained a cautious wait-and-see sentiment, mainly purchasing small quantities based on need. The destocking progress of finished products fell short of expectations, with days of finished product inventories for sample enterprises at 5.11 days, indicating ongoing inventory pressure.
Looking ahead to next week (July 17-23), the off-season downstream market is not expected to show significant improvement. Orders in refrigeration, sanitary ware, and hardware are unlikely to recover. Meanwhile, the current situation of tight raw material supply and high procurement costs will continue to constrain enterprise production. SMM expects the operating rate of sample brass billet enterprises to pull back slightly to 49.19%, with the industry's low operating status continuing.
