High copper prices restrict downstream stockpiling, and wire and cable operating rates continue to decline [SMM Weekly Wire and Cable Market Review]

This week (July 25–July 30), the SMM copper wire and cable enterprise operating rate recorded 65.94%, down 1.24 percentage points WoW and 1.4 percentage points YoY. During the week, copper prices pulled back in stages but remained in a high range. Downstream enterprises maintained a cautious purchasing sentiment, with market transactions largely supported by rigid demand, and growth in new orders was limited. Inventory side, wire and cable enterprises remained on the sidelines regarding raw material procurement, only restocking for rigid demand on slight pullbacks, with raw material inventory down 0.47% WoW. Facing weak demand in the off-season, wire and cable enterprises slowed their production pace and prioritized digesting existing finished product inventories, with finished product inventories down 1.48% WoW. Looking ahead to next week, the industry remains in the traditional consumption off-season. Coupled with further copper price increases suppressing downstream order signing willingness, enterprises are expected to continue reducing production loads. SMM expects the copper wire and cable operating rate next week (July 31–August 6) to decline by 1.5 percentage points WoW to 64.44%, and also down 1.5 percentage points YoY.