Weak New Orders Downstream; Copper Rod Enterprises Cut Production and Destock [SMM Copper Cathode Rod Weekly Review]

Published: Sep 4, 2026 09:03

Save

The operating rate of major copper cathode rod enterprises in China this week (August 28 - September 3) was 59.13%, down 3.31 percentage points WoW, down 4.26 percentage points from expectations, and down 10.65 percentage points YoY. This week, copper prices swung wildly. Downstream users actively placed orders and locked in procurement costs when copper prices pulled back, but new orders had not yet entered production schedules in a concentrated manner. Additionally, some enterprises chose to cut production and destock due to high finished product inventories, dragging the operating rate down WoW. By industry, terminals such as wire and cable and enamelled wire were affected by copper prices staying high, with insufficient new orders and limited operations, keeping overall demand persistently weak. On the inventory side, affected by high premiums, copper rod enterprises were cautious in purchasing, mainly consuming raw material inventories, with raw material inventories down 4.23 percentage points WoW. Downstream cargo pick-up pace was moderate, but due to production cuts and priority consumption of finished product inventories, finished product inventories fell 3.81 percentage points MoM. Looking ahead to next week (September 4 - September 10), new orders from this week will gradually enter the production schedule cycle. SMM expects the operating rate of copper cathode rod enterprises next week to increase by 1.36 percentage points WoW to 60.49%.

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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

9 mins ago

Anax Launches Whim Creek Heap-Leach Feasibility Study After Copper Recoveries Reach 77–80%

Anax Metals has launched a heap-leach feasibility study at its Whim Creek copper-zinc project in Western Australia, assessing a second processing route alongside its planned concentrator. Recent CSIRO column tests achieved 77–80% copper extraction and more than 90% zinc extraction from lower-grade ores. The study, targeted for completion in Q1 2027, will evaluate the potential production and marketing of copper cathode from the existing permitted heap-leach and SX-EW infrastructure.

9 mins ago

11 mins ago

Korea Zinc’s KZAM Begins Mass Copper Foil Shipments, Completing E-Waste-to-Copper Foil Recycling Chain

Korea Zinc said its affiliate KZAM has been mass-producing battery copper foil since June and has begun supplying a global battery customer, marking its first commercial shipments. The material will be used in batteries manufactured in North America, with expected revenue of up to KRW40 billion. Korea Zinc also confirmed an integrated recycling chain in which e-waste collected by its U.S. subsidiary Pedal Point is processed at the Onsan smelter into recycled copper, which is then used as feedstock for KZAM's battery-grade copper foil.

11 mins ago

13 mins ago

Low inventory versus just-in-time procurement, copper prices continue to drift higher [SMM Copper Morning Meeting Summary]

Overnight LME copper opened at $14,236.5/mt, dipped to $14,233/mt in early trading, then drifted higher with its price center rising toward the session end to $14,362/mt, and finally closed at $14,362/mt, up 0.88%. Trading volume reached 14,400 lots, and open interest stood at 265,000 lots, down 3,627 lots from the previous trading day, reflecting bear position reductions. Overnight the most-traded SHFE copper 2610 contract opened at 109,100 yuan/mt, drifted higher in early trading to 109,210 yuan/mt, then drifted lower to 108,930 yuan/mt, moved sideways, and finally closed at 109,110 yuan/mt, up 0.53%. Trading volume reached 32,000 lots, up 743 lots from the previous trading day, reflecting bull position additions.

13 mins ago