SMM, January 17:
According to SMM survey data, the operating rate of secondary copper rod reached 22.53% this week, down 2.39 percentage points WoW and 22.06 percentage points YoY. The average price spread of refined and secondary copper rods this week was 1,599 yuan/mt, an increase of 561 yuan/mt from last week's 1,038 yuan/mt. Meanwhile, the average discount of secondary copper rod in Jiangxi was 970 yuan/mt, up 440 yuan/mt WoW.
Due to some enterprises starting the Chinese New Year holiday early, the total supply of secondary copper rod declined. However, with copper prices continuously rising and the price spread between refined and secondary copper rods widening, wire and cable enterprises showed increased stockpiling sentiment before the holiday. Secondary copper rod enterprises still in production this week received a significant number of pre-holiday orders. These enterprises actively procured and produced this week to complete order deliveries before January 25. Based on communication with enterprises, some will begin shutting down furnaces as early as Monday, January 20, while others will do so by January 24 at the latest. Starting January 25, the majority of secondary copper rod enterprises will begin their Chinese New Year holiday, with most reporting that their holiday schedule is almost the same as in previous years.
Looking ahead to next week, as secondary copper rod enterprises gradually enter the holiday period, the operating rate of secondary copper rod is expected to drop to just 14.18%.
