Operating rates at copper rod producers using copper cathode as raw material rose 12.54 percentage points on the month and 7.61 percentage points on the year to 73.77% in March, according to SMM survey of 52 producers with a total capacity of 12.73 million mt/year. The average operating rate of large, medium-sized and small enterprises was 76.28%, 69.93% and 69.21% respectively.
The operating rates topped expectations in March and hit a three-year high (2020-2022). According to the survey, the operating rates rebounded sharply due to two reasons: 1. Demand for copper rod from downstream wire and cable as well as enamelled wire industries grew amid the traditional high season. 2. Copper prices fell sharply in mid-March, attracting downstream buyers to place a large number of orders. However, the average operating rate still stood below pre-Covid-19 pandemic levels (2018, 2019), which suggests that the end-user consumption only picked up slightly.
