Existing Order Buffer Decline, Next Week’s Production to Continue Weakening [SMM Wire and Cable Market Weekly Review]

This week (June 2 – June 18), the operating rate of SMM copper wire and cable enterprises was recorded at 69.27%, down 1.76 percentage points MoM and down 3.99 percentage points YoY. During the week, copper prices fluctuated at highs, suppressing downstream purchasing enthusiasm and weakening new orders, which weighed on operations; only some stock orders supported by the pullback in copper prices late last week limited the decline in the operating rate. End-use demand remained subdued overall, with orders across most industries showing mediocre performance; AI data center ancillary orders performed relatively well, while export orders also provided a certain level of support for enterprises. On the inventory front, after copper prices rebounded, enterprises prioritized consuming existing inventories, leading to a 2.88% MoM decline in raw material inventory. Enterprises slowed their production pace and prioritized consuming existing finished products, resulting in a 1.41% MoM decline in finished product inventories, mainly due to. Looking ahead to next week, no signs of improvement have yet emerged in the sluggish downstream demand. SMM expects the operating rate of copper wire and cable enterprises next week (June 19 – June 25) to decline further by 0.81 percentage points MoM to 68.46%, down 1.72 percentage points YoY.