Daily Updates on SHFE Base Metals and Stainless Steel Warrants (Nov 29)

[SMM Copper Cathode Rod Express] Looking ahead to next week, new orders will be gradually scheduled for production, and coupled with sustained destocking of finished product inventories to support production, the operating rate of copper cathode rod is expected to remain stable. SMM estimates that next week, the operating rate of copper cathode rod enterprises will rise by 0.89 percentage point WoW.

[SMM Copper Cathode Rod Flash] This week, inventories in the copper cathode rod industry showed notable divergence: With copper prices declining and orders on hand sufficient, the willingness to restock raw materials strengthened, driving raw material inventories up 1.07 percentage points WoW; as copper prices fell to downstream psychological price levels, finished product shipments accelerated, and finished product inventories destocked by 4.58 percentage points WoW.

[SMM Copper Cathode Rod Flash] This week, the operating rate of copper cathode rod producers rose 1.6 percentage points WoW, beating expectations by 6.16 percentage points. The sharp retreat in copper prices spurred concentrated price fixings among downstream wire, cable, and enamelled wire users, and new orders at copper rod mills drove an above-expectation recovery in operating rates. Demand from top-tier wire and cable players rebounded markedly, while enamelled wire orders recorded only a mild improvement, without explosive growth.