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% in March.
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 resistance from copper prices and cut-throat competition. After entering March, market demand gradually recovered, and market orders emerged successively. However, copper prices deviated from market expectations and continued to rise. While high copper prices could stimulate some customers to rush to buy amid continuous price rises, more customers chose to wait and see, suppressing the sustained release of downstream demand. By late March, the growth of new orders for copper wire and cable enterprises had almost stagnated, and production mainly relied on previous orders on hand. The performance of new orders was insufficient to drive further increases in the operating rate. By sector, in early March, orders from the power grid, various construction projects, and new energy power generation were placed. However, as copper prices rose, market sentiment became cautious, and the volume of aluminum and aluminum alloy cables grew more significantly.
From the inventory perspective of copper wire and cable enterprises, the raw material inventory of SMM's sampled copper wire and cable enterprises in March recorded 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 recorded 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' purchase willingness for raw materials significantly decreased. After copper prices pulled back at month-end, some enterprises chose to restock. Meanwhile, the cargo pick-up speed of downstream enterprises notably slowed down.
SMM forecasts that the operating rate of copper wire and cable enterprises will increase by 5.2 percentage points MoM to 78.8% in April, with a significant slowdown in growth rate, up 5.38 percentage points YoY. Most enterprises believe that copper prices will remain the main factor disturbing orders in April, and the pace of demand release fluctuates significantly with copper prices. Demand side, the growth of medium and low voltage orders still falls short of expectations, while high voltage orders are relatively full. By industry, State Grid and Southern Grid orders maintain normal placement without exceeding expectations, while automotive wiring harness orders, submarine cables, and PV orders perform well. However, rail transit and various construction engineering orders are not optimistic. Currently, some enterprises report that low-price competition in the market is intensifying, order profit margins are gradually decreasing, and collection tasks are arduous. In addition, the increase in demand for aluminum and aluminum alloys under high copper prices exerts resistance 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 slows down in April, and order growth still needs to break through numerous difficulties.
