Copper Cable Enterprises' Operating Rates Exceed Expectations in April, with Large and Small Enterprises Taking Different Paths amid Market Surge [SMM Analysis]

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       According to SMM, the operating rate of copper wire and cable enterprises in April 2025 was 81.31%, up 7.71 percentage points MoM and 7.89 percentage points YoY, 2.51 percentage points higher than the expected operating rate. Specifically, the operating rate of large copper wire and cable enterprises was 87.45%, that of medium-sized enterprises was 59.01%, and that of small enterprises was 47.71% in April.

Data source: SMM

       The unexpectedly high growth in the operating rate of copper wire and cable enterprises in April was largely attributed to the sharp decline in copper prices at the beginning of the month. Multiple enterprises told SMM that their new orders reached a record high on the day when copper prices fell by the daily limit. In terms of order types, the significant pullback in copper prices promoted comprehensive growth in various types of orders. Orders from the two power grids and submarine cable orders saw notable increases, while infrastructure and civil engineering orders also recovered.It is worth noting that the growth rate of PV-related orders slowed down gradually in April, and the market is waiting for the introduction of new policies in May to observe their performance.Regarding export orders, most enterprises indicated that they have not been affected so far, and it will take time for the impact to be transmitted along the industry chain.

       On the inventory side, the raw material inventory of SMM copper wire and cable sample enterprises reached 48,247 mt in April, up 13.08% MoM. The raw material inventory/output ratio was 19.55%, up 0.45 percentage points MoM. Finished product inventories reached 51,000 mt, up 3.68% MoM, and the finished product inventory/output ratio was 20.66%, down 1.35 percentage points MoM. Although it was close to the Labour Day holiday at the end of April, copper wire and cable enterprises were less active in stockpiling at the month-end compared to previous years. Some enterprises had already stockpiled in advance when copper prices fell, while others maintained a cautious procurement attitude.

       SMM expects the operating rate of copper wire and cable enterprises to increase by 3.35 percentage points MoM to 84.66% in May, 16.76 percentage points higher than the same period last year. Among them, the operating rate of large enterprises is expected to be 91.53%, that of medium-sized enterprises is expected to be 60.32%, and that of small enterprises is expected to be 45.71%.It is worth noting that the expected operating rate of small enterprises in May is expected to decline MoM, deviating from the performance of medium and large enterprises.Multiple small enterprises indicated that although May is traditionally a peak season, issues such as copper price fluctuations, low-price competition, and extended payment terms are highly unfavorable for small enterprises. The difficulty for enterprises to secure orders is increasing day by day, exacerbating the polarization within the wire and cable industry. In addition, the performance of end-use market demand in May is a key focus within the industry.A top-tier enterprise expressed concern to SMM that the decline in copper prices in April may have already spurred some demand in May to be released in advance. If copper prices remain at a high level in May, it will limit the upside potential for the operating rate of copper wire and cable enterprises in May.