SMM Analysis: Copper strip orders continued to decline in December, end-of-year consumption difficult to support

In December 2023, the operating rate of copper strip was 76.45%, a decrease of 2.98 percentage points from the previous month and a decrease of 0.52 percentage points year-on-year. The production of copper strip orders in December did not meet expectations, with softness in orders for battery tabs and connectors in the new energy industry. According to SMM research, several copper strip production enterprises in Zhejiang and Jiangsu provinces indicated that orders from some downstream distributors and stamping plants began to decline, and some stamping plants even started to reduce production and take early vacations due to the outsourcing of labor. In the electrical industry, orders for power transformers, stamping parts, power fittings, complete busbars, and electronic components have all declined, while in the new energy industry, there has been a significant reduction in orders for battery tabs, connectors, and transfer pieces.