Secondary copper rod enterprises are expected to resume production soon, with a significant anticipated increase in the operating rate. [SMM Weekly Review on Secondary Copper Rod]

SMM, February 7: According to SMM survey data, the operating rate of secondary copper rod this week was 3.31%, up 3.31 percentage points WoW but down 1.06 percentage points YoY. The average price spread of secondary copper rod and copper scrap rod this week was 1,064 yuan/mt, down 155 yuan/mt WoW. Additionally, the average discount of secondary copper rod in Jiangxi against copper futures reached 680 yuan/mt, expanding by 124 yuan/mt WoW. Most secondary copper rod enterprises resumed normal administrative operations on February 5; however, full production staffing is expected after the Lantern Festival. Due to sufficient finished product inventories before the holiday, these enterprises are not in a hurry to resume production immediately. Many plan to start production this Saturday and Sunday, with copper rod output expected to begin next Monday. In terms of raw material procurement, as the upstream market has not fully resumed operations, the market circulation of secondary copper raw material remains limited despite a significant rise in copper prices. This week, the finished product inventories of secondary copper rod enterprises stood at 6,100 mt, down 4,300 mt WoW, while the inventory of secondary copper raw material was 4,100 mt, down 2,000 mt WoW. Looking ahead to next week, secondary copper rod enterprises are expected to fully resume production after the Lantern Festival, with a significant rebound in operating rates. 》Subscribe to view historical SMM metal spot prices 》Click to access the SMM copper industry chain database