Copper Cathode Rod Operating Rate Rebounded WoW, Rigid Demand Orders Provided Underlying Support [SMM Copper Cathode Rod Weekly Review]

Published: Aug 28, 2026 10:27

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The operating rate of China’s major copper cathode rod enterprises was 62.44% this week (August 21–August 27), up 1.24 percentage points MoM, 2.49 percentage points higher than expected, and down 5.68 percentage points YoY. Copper prices drifted higher this week; new orders at enterprises slowed down markedly and were mostly rigid demand that had been suppressed for a long time, with production mainly relying on orders on hand. In addition, as out-of-sample enterprises halted production and some orders shifted to in-sample enterprises, the weekly operating rate rebounded slightly, while actual downstream demand remained steady. By sector, end-users such as cables and enamelled wire were affected by copper prices staying high, and overall demand was weak. Inventory-wise, approaching month-end and coupled with scarce market supply, enterprises actively replenished, and raw material inventory rose 2.68 percentage points MoM; the pace of downstream pick-up goods was slow, with no concentrated restocking yet, pushing finished product inventories up 0.16 percentage points MoM. Looking ahead to next week (August 28–September 3), in-sample enterprises that underwent maintenance-related production cuts this week will resume normal production. SMM expected the operating rate of copper cathode rod enterprises to increase by 0.95 percentage points MoM to 63.39% next week.

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