"Divergent Labour Day Production Strategies Among China's Secondary Copper Rod Firms Amid Policy and Capital Pressures"

Published: May 2, 2026 20:40

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During the 2026 Labour Day holiday, production arrangements among China's secondary copper rod enterprises showed a notable divergence, with some choosing to halt production for the holiday while others maintained normal operations. Behind this disparity lay deep-seated contradictions in the current market regarding fiscal and tax policies, capital turnover, and raw material supply and demand. In terms of holiday duration, although most enterprises that did not take time off indicated the duration was on par with 2025, it is worth noting that some enterprises that had holiday arrangements in 2025 adopted full production shutdowns this year, signaling a shift in business strategies. Regarding specific reasons, the invoice crisis triggered by the "reverse invoicing" policy became the core factor overwhelming some enterprises. Multiple enterprises explicitly pointed out that due to severe shortages of invoices for raw material procurement, they were unable to meet compliance production requirements and had no choice but to arrange worker holidays. Meanwhile, capital pressure and raw material shortages also severely constrained enterprises' willingness to produce. Some enterprises openly stated that current capital pressure was enormous, making it impossible to stockpile before the holiday or maintain production; others were forced to shut down due to insufficient raw materials. In stark contrast to these enterprises beset by policy and capital pressures, those that chose not to take holidays mostly possessed sufficient raw material reserves or stable cash flows, enabling them to maintain normal production pace. Overall, the holiday duration of secondary copper rod enterprises during the Labour Day holiday was not simply determined by statutory holiday length, but rather represented a reluctant response by enterprises to the current complex market environment — particularly the challenges of resolving fiscal and tax invoice difficulties and securing raw material supply. The challenges facing enterprises forced to halt production due to invoice issues were far more severe than mere holiday adjustments, adding uncertainty to the post-holiday market recovery.

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