Operating Rates of Copper Cathode Rod Producers Declined More Than Expected as Year-End Tightened Funds, but Some Companies Remained Stable [SMM Analysis]

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       This week, the SMM survey covered the production and sales of major medium-sized and large domestic copper rod enterprises. The overall operating rate of enterprises was 74.92%, down 5.69 percentage points MoM and 2.37 percentage points below the expected value. (Surveyed enterprises: 21, capacity: 7.83 million mt).  

       The weekly operating rate (12.20-12.26) of major domestic copper cathode rod enterprises fell more than expected to 74.92%, down 5.69 percentage points MoM, 2.37 percentage points below the expected value, and up 7.33 percentage points YoY, with the YoY growth narrowing. Approaching the end of 2024, new orders in the market slightly declined, and more enterprises entered the year-end closing period, tightening funds or scheduling maintenance. This led to a MoM decline in the weekly operating rate of copper cathode rods. Notably, although new orders slightly weakened, many medium-sized and large copper cathode rod enterprises maintained stable orders on hand, and stable operations are expected to continue after the New Year’s Day holiday.

       From the inventory perspective, with the decline in operating rates and tighter year-end policies for most enterprises, the raw material inventory of major domestic copper cathode rod plants decreased by 9.78% MoM this week, recording 38,750 mt. Finished product inventories of copper cathode rod plants also decreased by 3.79% MoM, recording 55,900 mt. Looking ahead, next week will coincide with the New Year holiday and the final week of 2024, during which more enterprises are expected to reduce their capacity utilisation rates. The operating rate of copper cathode rods is expected to continue declining to 68.46% during the week of 12.27-1.2, with YoY growth continuing to narrow.

       Details of the Survey on Some Copper Cathode Rod Enterprises