According to SMM, the operating rates of copper billet producers in December 2024 stood at 54.91%, up 1.23% MoM. Specifically, the operating rate of large enterprises was 58.68%, medium-sized enterprises 52.53%, and small enterprises 49.01%.
The operating rate in the copper billet market continued to rise in December, following the increase in November. This was mainly attributed to Q4 being the traditional peak season for the copper billet industry, with most enterprises reporting an increase in orders compared to November, though the growth in orders did not exceed market expectations. According to SMM analysis, on one hand, as the year-end approached, downstream industries of copper billets actively stocked up, particularly in hardware and sanitary products, where order volumes remained relatively stable, providing sustained production momentum for copper billet producers. On the other hand, concerns over potential tariff hikes after Trump’s inauguration persisted, prompting some downstream enterprises to expedite exports in early December to mitigate risks. It is reported that export orders from downstream enterprises performed well in the sanitary products and auto parts sectors, jointly driving the increase in operating rates.
Impact of Chinese New Year Holiday on Copper Billet Operating Rates: Medium and Small Enterprises More Significantly Affected
In January 2025, the operating rates of the copper billet industry are expected to be significantly impacted by the Chinese New Year holiday. SMM forecasts the operating rate in January to be 49.07%, down 7.07% MoM. According to SMM, large copper billet enterprises plan to halt operations only two to three days before Chinese New Year’s Eve, which will not significantly affect overall production, though the holiday shutdown may disrupt shipments on the sales side. In contrast, medium and small enterprises, which start their holidays earlier, are expected to see a more pronounced decline in operating rates. Additionally, on the supply side, overseas suppliers offered fewer quotes in December due to holidays and other factors. Coupled with traders and enterprises suspending purchases of US-origin materials, the supply of brass raw materials in the market remained tight, which also contributed to some medium and small enterprises starting their holidays earlier.
