SMM Analysis: Sluggish Post-Holiday Consumption Causes Varying Inventory Buildups Among Copper Enterprises

[SMM Analysis: Post-Holiday Sluggish Consumption Leads to Varying Degrees of Inventory Buildup Among Enterprises]

In February, the operating rate of secondary copper rod reached 26.81%, lower than the expected 31.7%. After the Chinese New Year holiday, copper prices initially rose and then pulled back, climbing to a high of 78,500 yuan/mt before pulling back to a sideways movement in the range of 76,500-77,500 yuan/mt. Following the rapid post-holiday surge in copper prices, the price difference between primary metal and scrap quickly narrowed to 2,800 yuan/mt, while the price difference between primary and secondary copper rods widened to 1,370 yuan/mt. Although the economic benefits of secondary copper rods became somewhat evident, end-user enterprises and traders remained cautious. Due to the further increase in copper prices compared to pre-holiday levels, post-holiday orders from end-user wire and cable enterprises were scarce, and restocking demand has yet to materialize...