High Copper Prices Suppressed Demand, Copper Wire and Cable Operating Rates Pulled Back WoW [SMM Wire and Cable Market Weekly Review]

This week (April 17–April 23), the SMM copper wire and cable enterprise operating rate was 67%, down 2.43 percentage points WoW. Copper prices fluctuated at highs this week, suppressing downstream purchasing enthusiasm, and new orders for wire and cable enterprises weakened overall. By segment, power grid orders remained low with sluggish demand release; the telecommunications sector saw relatively stable orders, providing partial demand support. Notably, as temperatures rebounded and construction conditions improved, orders in the building sector showed a seasonal recovery. Inventory side, enterprises mostly maintained a just-needed pace for raw material procurement, primarily consuming existing raw material stocks, resulting in a 3.14% WoW decline in raw material inventory; on the finished goods side, affected by a slowdown in downstream cargo pick-up and insufficient new orders, inventory accumulated slightly, up 2.79% WoW. Looking ahead to next week, follow-up new orders are expected to remain weak, and copper prices fluctuating at highs are expected to weigh on downstream purchasing sentiment, with operating rates continuing their downward trend. Although the Labour Day holiday is approaching, uncertainty over copper price fluctuations remains high, and enterprises are generally cautious in their stockpiling willingness. Therefore, SMM expects the copper wire and cable operating rate next week (April 24–April 30) to decline 1.62 percentage points WoW to 65.37%.