The Operating Rate of Copper Wire and Cable Enterprises Rose in March. Will They Face Pressure in April? [SMM Analysis]

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       According to SMM, the operating rate of copper wire and cable enterprises in March 2025 was 73.6%, up 12.71 percentage points MoM and up 1.72 percentage points YoY, only 2.4 percentage points higher than the expected operating rate. Specifically, the operating rate of large enterprises was 78.64%, medium-sized enterprises was 56.69%, and small enterprises was 42.88%.

Data Source: SMM

       Overall, the operating performance of the copper wire and cable industry in March was moderate. Although the operating rate slightly exceeded expectations, it still faced pressure from copper prices and cut-throat competition. After entering March, market demand gradually recovered, and market orders emerged one after another. However, copper prices deviated from market expectations and continued to rise. Although high copper prices could stimulate some customers to rush to buy amid continuous price rise, more customers chose to wait and see, suppressing the continuous release of downstream demand. By late March, the growth of new orders for copper wire and cable enterprises had almost stagnated, and enterprises relied on previous orders on hand for production. The performance of new orders was difficult to promote further increases in the operating rate. By industry, in early March, orders from the power grid sector, various construction projects, and new energy power generation all showed activity. However, as copper prices rose, market sentiment became cautious, and the volume of aluminum and aluminum alloy cables grew more significantly.

       In terms of inventory of copper wire and cable enterprises, the raw material inventory of SMM's sample enterprises in March was 42,667 mt, down 0.39% MoM, with a raw material inventory ratio of 19.1%, down 4.08 percentage points MoM. The finished product inventory was 49,190 mt, up 7.1% MoM, with a finished product inventory ratio of 22.02%, down 2.83 percentage points MoM. In March, affected by high copper prices, enterprises' willingness to purchase raw materials significantly decreased. After copper prices pulled back at month-end, some enterprises chose to restock. However, the cargo pick-up speed of downstream enterprises slowed significantly.

       SMM expects the operating rate of copper wire and cable enterprises in April to increase by 5.2 percentage points MoM to 78.8%, with a significant slowdown in growth rate, up 5.38 percentage points YoY. Most enterprises believe that copper prices in April will remain the main factor disturbing orders, and the release rhythm of demand will fluctuate significantly with copper prices. Demand side, the growth of medium and low voltage orders still fell short of expectations, while high voltage orders were relatively full. By industry, orders from State Grid and Southern Grid maintained normal activity without exceeding expectations. Orders for automotive wiring harnesses, submarine cables, and PV performed well, while orders for rail transit and various construction projects were not optimistic. Some enterprises stated that low-price competition in the market is intensifying, order profit margins are gradually decreasing, and the task of collecting payments is arduous. In addition, the increase in demand for aluminum and aluminum alloys under high copper prices has put pressure on the growth of copper wire and cable orders. Therefore, overall, the growth rate of the operating rate in the copper wire and cable industry in April is slowing, and order growth still needs to break through numerous difficulties.