Entering Year-End, Corporate Funds Tighten, and Copper Cathode Rod Operating Rate Declines More Than Expected [SMM Weekly Review on Copper Cathode Rod Production]

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       The weekly operating rate of major domestic copper cathode rod enterprises (12.20-12.26) unexpectedly dropped to 74.92%, down 5.69 percentage points MoM, 2.37 percentage points below the expected value, but up 7.33 percentage points YoY, with the YoY growth narrowing. Approaching the end of 2024, market new orders 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. From the inventory perspective, as the operating rate declined and year-end policies tightened 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, while finished product inventories also fell 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 rate. The operating rate of copper cathode rods is projected to further decline to 68.46% next week (12.27-1.2), with the YoY growth continuing to narrow.