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As the Labour Day holiday approaches, SMM has inquired about the production arrangements of domestic brass billet enterprises during the holiday. Data shows that approximately 60% of enterprises plan to take a 2-3 day holiday, which is basically flat compared to previous years. Only a few enterprises with poor order situations have chosen to suspend production to consume finished product inventories.
From the perspective of order performance, the brass billet market in April showed significant fluctuations. At the beginning of the month, stimulated by the decline in copper prices, downstream restocking enthusiasm surged. However, as copper prices soared, procurement costs increased, and downstream procurement enthusiasm dropped sharply. Coupled with the uncertainty of tariff policies, the market's wait-and-see atmosphere intensified. Nevertheless, after copper prices stabilized in late April, downstream restocking sentiment slightly rebounded. It is worth noting that enterprises with sufficient orders, due to their production schedules extending into April, will only take a moderate holiday adjustment even during the holiday.
The tight supply of raw materials has become a prominent issue constraining enterprise production. According to SMM, most brass billet enterprises are facing severe raw material procurement pressures, and this dilemma is expected to remain difficult to effectively alleviate in Q2. Some enterprises have even increased their holiday durations due to raw material shortages, minimizing production as much as possible. The impact of tight raw material supply on enterprises' subsequent production arrangements will continue to manifest.
Overall, the Labour Day holiday arrangements of brass billet enterprises are mainly based on order production schedules, with most enterprises taking a similar number of holiday days as last year. However, the current situation of tight raw material supply in the industry cannot be ignored and may continue to affect enterprises' production rhythms.
