This week, the operating rate of brass billet enterprises showed a downward trend, dropping to 57.18%, down 3.94 percentage points WoW. After the Labour Day holiday, there were no signs of recovery in the industry's operations. Most enterprises reported that the actual length of the holiday this year was generally about one day longer than last year, indirectly reflecting a certain degree of YoY decline in current orders. According to SMM, the market performed weakly after the holiday, with enterprises experiencing sluggish growth in new orders and slower-than-expected product delivery progress. Export-oriented enterprises were particularly affected by the impact of US tariff policies, with some valve factories primarily focused on exports experiencing near-stagnation in production. Meanwhile, high copper prices and policy uncertainties led to weak downstream cargo pick-up willingness, causing enterprises' inventory pressure to continue rising. Raw material inventory increased by 1.29 days WoW to 6.09 days, while finished product inventory rose by 2.91 days WoW to 8.32 days, with a significant slowdown in turnover speed. Looking ahead to next week, given that downstream customers' inventories are gradually being digested and copper prices have not shown a significant upward trend in the short term, SMM expects the operating rate of brass billet enterprises to rebound, increasing by 1.76 percentage points WoW to reach 58.94%.
