Copper price pullback stimulated order releases, with operating rates of copper billet producers rebounding beyond expectations [SMM Brass Billet Market Weekly Review]

This week (9.11-9.17), the operating rate of SMM brass billet sample enterprises was 48.74%, up 1.28 percentage points WoW. During the week, copper prices retreated from highs, easing the pressure of previously high-priced raw materials on downstream orders and prompting the release of some wait-and-see orders. On the raw material side, secondary brass supply remained tight, raw material prices stayed high, and enterprises continued to face thin processing margins. This week, sample enterprises' days of raw material inventories stood at 3.56 days, still at a low level, with enterprises purchasing as needed. On the demand side, after copper prices pulled back, the pattern of downstream making only just-in-time procurement improved, and finished product destocking accelerated. This week, sample enterprises' days of finished product inventories were 5.05 days, down 0.22 days WoW. Looking ahead to next week (9.18-9.24), with the dual holidays approaching, pre-holiday stockpiling demand still has room to be released, and combined with sustained production enthusiasm among enterprises, SMM expects the operating rate to rise by another 1.03 percentage points to 49.77%.