Lower copper prices boosted consumption of copper semis

The average operating rate of key copper rod plants using copper cathode as raw material was 82.75% (October 6-12), an increase of 3.37 percentage points from the previous week. In the first week after the National Day holidays, the consumption of copper rod produced with copper cathode exceeded expectations. According to the survey, most copper rod plants using copper cathode as raw material resumed normal production on October 6, with little impact on the operating rates.

As copper prices fell two Mondays ago, downstream purchasing continued to pick up, with order volume and delivery speed both performing well. According to feedback from some copper rod plants using copper cathode as raw material, orders from downstream cables and enamelled wires increased, and there was even a "surge in orders" during the week. As some copper rod plants suspended production during the holidays, finished product inventories were at a low level. Amid surging downstream orders after the holidays, some copper rod plants using copper cathode as raw material reached full production capacity to meet downstream delivery-taking needs. The narrower price spread between copper rod produced with copper cathode and with copper scrap boosted consumption of copper rod produced with copper cathode. According to SMM data, the price difference shrank to a minimum of 275 yuan/mt two weeks ago. The shortages of copper scrap supply also tightened available spot copper rod produced with copper scrap.