Average Operating Rate Of Key Copper Rod Plants Using Copper Cathode As Raw Material

The average operating rate of key copper rod plants using copper cathode as raw material was 87.16% last week (October 20-26), an increase of 1.68 percentage points from the previous week. Copper rod factories in north China resumed normal production, driving the average operating rate to rebound. From the perspective of consumption, new orders cooled down due to higher copper prices.

Enterprises reported that downstream purchasing sentiment has turned cautious since Tuesday, with orders placed decreasing significantly compared with the prior week. Nonetheless, considerable existing orders ensured a stable production schedule. SMM data shows that the average price spread between copper rod produced with copper cathode and with copper scrap last week expanded and stood at 471 yuan/mt. But there was still a lack of economic benefits for copper rod produced with copper scrap. This, combined with tight spot supply of copper rod produced with copper scrap, continued to boost the consumption of copper rod produced with copper cathode.