This week (12.27-1.2), the operating rate of SMM copper wire and cable enterprises was 77.9%, down 4.42 percentage points WoW and 7.33 percentage points YoY, only 0.36 percentage points higher than the expected operating rate, generally aligning with the seasonal weakening trend. As the year-end approaches, market procurement enthusiasm weakened, and market orders significantly decreased compared to earlier. Wire and cable enterprises actively promoted downstream picking up goods to reduce finished product inventories while strictly controlling raw material procurement volumes to minimize year-end capital occupation. Although the week ended with the start of 2025, the sharp decline in copper prices caused most customers to adopt a wait-and-see attitude, and the previously accumulated orders for 2025 were not significantly released. The copper price trend still requires further attention. SMM expects the operating rate of SMM copper wire and cable enterprises to increase by 0.65 percentage points WoW to 78.55% next week (1.3-1.9). According to SMM, most enterprises remain concerned about 2025. While power grid-related orders may remain stable, uncertainties in new energy power generation orders are increasing. Orders for real estate, infrastructure, and other construction projects are still struggling to recover, and the impact of aluminum orders on copper wire and cable may continue to expand. The copper wire and cable market in 2025 is expected to remain challenging.
