Raw Material Procurement Improved, Marginal Enhancement in Operating Rate of Secondary Copper Rod [SMM Weekly Review of Secondary Copper Rod]

SMM April 25 News: According to SMM survey data, the operating rate of secondary copper rod this week was 22.53%, up 0.53 percentage points WoW, but down 11.17 percentage points YoY. Meanwhile, the average price difference between copper cathode rod and secondary copper rod this week was 993 yuan/mt, up 489 yuan/mt MoM. In addition, the average discount of secondary copper rod in Jiangxi against copper futures was 264 yuan/mt, down 345 yuan/mt MoM. The rebound in copper prices during the week improved the procurement situation for secondary copper rod enterprises, and production resumed after mid-week. However, due to the 2% verified collection issue and the price difference between copper cathode rod and secondary copper rod remaining below the advantage line of 1,100 yuan/mt, enterprises without pending orders still did not resume production. Only a few enterprises chose to resume production due to the approaching delivery dates of orders and relatively sufficient raw material procurement, leading to a marginal improvement in the operating rate of secondary copper rod. The weekly sample finished product inventory of secondary copper rod enterprises was 2,600 mt, up 850 mt WoW. According to the secondary copper rod gross profit calculation model, the average gross profit of secondary copper rod sales this week was 323 yuan/mt, up 348 yuan/mt WoW. Additionally, the copper anode RC this week remained at 800-900 yuan/mt. In summary, the improvement in secondary copper rod gross profit and selling prices higher than copper anode indicate that secondary copper rod enterprises are more willing to produce copper anode next. After the tax-related issues of "reverse invoicing" are resolved, the operating rate of secondary copper rod is expected to continue to rebound. As the May Day holiday approaches, many secondary copper rod enterprises will maintain normal operations, and some may even need to increase furnace production to complete output tasks. The operating rate of secondary copper rod is expected to be 27.97% next week. > Order to view SMM metal spot historical prices > Click to view SMM copper industry chain database