Copper Prices Remain High and Volatile, Operating Rate of Wire and Cable Enterprises Declines Again [SMM Wire and Cable Market Weekly Review]

       This week (3.21-3.27), the operating rate of SMM copper wire and cable enterprises was 72.86%, down 1.67 percentage points WoW and 0.22 percentage points YoY, 3.99 percentage points lower than the expected operating rate. This week, copper prices remained high with increased volatility, significantly dampening the procurement sentiment of end-users, most of whom remained in a wait-and-see mode. As a result, the volume of new orders for enterprises decreased again WoW, and most copper wire and cable enterprises continued to rely on previous orders on hand to sustain production. The growth rate of new orders was insufficient to support the increase in copper usage, leading to a continuous decline in the operating rate of copper wire and cable enterprises this week. In terms of industry orders, SMM only heard that the Southern Power Grid recently placed orders. Additionally, orders for submarine cables and PV-related products performed relatively well due to the push for installation. However, the State Grid's recent orders for copper wire and cable were not significant, and orders in the communication and rail transit sectors also showed no positive performance. The current trend of copper prices remains unclear, and market demand continues to be suppressed and delayed. A significant rebound in copper wire and cable orders will require relatively stable copper prices. Therefore, SMM expects that the operating rate of copper wire and cable enterprises will only increase by 2.77 percentage points to 75.63% next week (3.28-4.3), just 0.41 percentage points higher than the same period last year.