Peak season expectations have not yet materialized, copper prices at high levels disrupt the pace of wire and cable production [SMM Wire and Cable Market Weekly Review]

This week (August 28–September 3), the operating rate of SMM copper wire and cable enterprises recorded 66.27%, down 0.24 percentage points WoW and down 0.48 percentage points YoY. During the week, copper prices fluctuated at highs overall, continuing to suppress downstream order releases. Although copper prices pulled back briefly during the period, the extent of the correction was limited and failed to effectively boost order growth. The rebound in copper prices at the end of the week instead drove a small volume of rigid-demand orders to be placed. End-use demand side, despite the approaching traditional peak season, demand across various sectors has yet to show substantive recovery. Inventory side, copper prices pulled back slightly at the end of the week, and wire and cable enterprises carried out rigid-demand restocking, with days of raw material inventories up 0.08 days WoW. End-users restocked small volumes at lower prices, and days of finished product inventories fell 0.03 days WoW. Looking ahead to next week, high copper prices will continue to constrain demand, and enterprises remain cautious and wait-and-see regarding peak season order releases. SMM expects the operating rate of copper wire and cable to increase by 1.03 percentage points WoW to 67.3% next week (September 4–September 10), down 0.45 percentage points YoY.