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According to SMM, the overall operating rate of the copper plate/sheet and strip industry in February 2025 was 56.47%, down 1.87 percentage points MoM and up 13.26 percentage points YoY (February 2024 was the Chinese New Year month), 4.11 percentage points lower than the expected operating rate. Among them, the operating rate of large enterprises was 58.45%, medium-sized enterprises 55.21%, and small enterprises 51.82%. The operating rate of the plate/sheet and strip industry in February was at a relatively low level in recent years, slightly below expectations overall.
Specifically, fewer production days in February were the main factor affecting enterprise operations. At the beginning of February, most enterprises in the industry were still on holiday, gradually resuming work and production after the holiday. After the holiday, copper prices exceeded market expectations, significantly impacting the pace of downstream orders, especially with the recovery of demand for brass plate/sheet and strip being noticeably slower than that for red copper plate/sheet and strip. Some enterprises also reported that the recovery of brass plate/sheet and strip orders was weaker than during the same period in the previous lunar year. Additionally, some enterprises informed SMM that there had been a rush in downstream orders and stockpiling before the Chinese New Year, which led to a partial advance in demand for February. In summary, the operating rate of the copper plate/sheet and strip industry in February slightly declined MoM and was below expectations. From the perspective of order types, SMM found that only orders related to NEVs (auto parts, batteries, charging piles) and power-related orders (transformers, wires, and cables) performed well. Many enterprises indicated that market orders were relatively sufficient, and by the end of February, production had returned to normal levels.
The Inventory Ratio of Copper Plate/Sheet and Strip Enterprises Declined MoM in February
In February, the raw material inventory of copper plate/sheet and strip enterprises recorded 22,237 mt, with a raw material inventory/output ratio of 17.49%, down 0.83 percentage points MoM. Finished product inventories recorded 24,390 mt, with a finished product inventory/output ratio of 19.18%, down 1.71 percentage points MoM. After the holiday, enterprises primarily consumed finished product inventories, and due to copper price fluctuations exceeding expectations, enterprises adopted a cautious attitude toward raw material procurement.
SMM Expects the Operating Rate of Copper Plate/Sheet and Strip Enterprises to Reach 65.11% in March
SMM expects the operating rate of copper plate/sheet and strip enterprises in March to increase by 8.64 percentage points MoM to 65.11%, 7.96 percentage points lower YoY. According to SMM, most red copper plate/sheet and strip orders have returned to normal levels for enterprises. The operating rate of copper plate/sheet and strip enterprises in March will mainly be dragged down by brass products, primarily due to the slower-than-expected recovery in demand for medium- and low-voltage power electrical and construction-related sectors. Additionally, the sharp rise in copper prices at the beginning of March slightly impacted the confidence of copper plate/sheet and strip enterprises, limiting the expected increase in the operating rate for March. SMM only heard optimistic feedback regarding NEV-related demand, while high-end power electrical products also showed relatively good recovery.
