Copper billet enterprises hold low raw material inventories, while finished product inventory destocking faces obstacles

[SMM Copper Anode Flash] Due to persistently tight supply of recycled copper anode in China, SMM China's smelter copper anode inventory days stood at 6.13 days in August 2026, down 0.16 days MoM, marking eight consecutive months of decline since January 2026.

According to foreign media reports, Russia’s Udokan Copper began producing copper cathodes at its hydrometallurgical plant in Zabaykalsky Krai in the Russian Far East on September 2, 2026. The cathodes have a copper purity of 99.99%. The project began producing copper concentrate in September 2023, and the commissioning of cathode production completes its integrated value chain from ore mining to refined copper. Cathode production was originally scheduled to begin in Q2 2024. However, a fire in December 2023 damaged part of the cathode facility, while Western sanctions complicated the replacement of the affected equipment. The project’s first phase is designed to produce up to 150,000 tonnes of contained copper annually in the form of copper concentrate and cathodes, mainly for Russia’s domestic market and other Asian markets. The 150,000-tonne figure represents combined contained copper output and should not be interpreted as standalone cathode capacity. Udokan’s new cathode production will increase refined copper supply from Russia’s Far East, although near-term volumes will depend on the pace of ramp-up, logistics and sanctions-related constraints. The company previously planned to raise total copper output to around 550,000 tonnes per year after the second phase comes online, but the project timetable still requires monitoring.

[SMM Copper Anode Market] During the week, some copper anode producers affected by the previous typhoon resumed production. From August 28 to September 3, SMM's weekly operating rate of China's secondary copper anode plate producers rebounded 5.75 percentage points WoW to 50.40%. It is expected to rise 3.69 percentage points WoW next week to 54.09%.