Operating rate of plate and strip enterprises in April fell short of expectations, and is expected to pull back in May [SMM Analysis]

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       According to SMM, the operating rate of SMM copper plate/sheet and strip enterprises in April 2025 was 73.81%, up 4.67 percentage points MoM and 3.3 percentage points YoY, which was 0.66 percentage points lower than the expected operating rate. Among them, the operating rate of large enterprises was 74.8%, that of medium-sized enterprises was 75.52%, and that of small enterprises was 66.52%.

Data source: SMM

       The operating rate of the SMM copper plate/sheet and strip industry in April fell short of expectations, with market demand being the key factor affected. Looking back at April, although the sharp drop in copper prices at the beginning of the month stimulated the active release of some orders, effectively boosting the operating rate of some plate/sheet and strip enterprises, affected by the Sino-US tariff trade, market demand began to decline in mid-to-late April, especially for orders in the electronics, PV, and copper clad laminate (CCL) sectors, limiting the increase in orders for plate/sheet and strip enterprises in April. In terms of enterprise inventory, the raw material inventory of SMM copper plate/sheet and strip sample enterprises in April was recorded at 23,700 mt, up 14.49% MoM, with a raw material inventory/output ratio of 14.26%, up 0.96 percentage point MoM. Finished product inventories were recorded at 25,570 mt, up 8.16% MoM, with a finished product inventory/output ratio of 15.39%, up 0.2 percentage point MoM.

       SMM expects the operating rate of the copper plate/sheet and strip industry in May to decline by 5.59 percentage points to 68.22%, which is 2.29 percentage points lower than the same period last year, with the overall market sentiment being relatively pessimistic. SMM has summarized the reasons affecting the operating rate in May as follows: 1) The sharp drop in copper prices in April, combined with downstream enterprises pre-stocking for the holiday at the end of the month, has pre-empted some of the demand in May; 2) The impact of tariff policies continues to expand, with a large enterprise indicating to SMM that its electronics orders are expected to decline by more than 10% MoM. In addition, orders for low-voltage electrical appliances, PV, and apparel and accessories have also shown significant weakness, with only relatively better performance heard for orders in the power and automotive connector sectors; 3) Some individual enterprises in the sample will conduct equipment maintenance in May. These are the main reasons dragging down the operating rate in May. Currently, high copper prices have exacerbated the wait-and-see sentiment among downstream customers, and tariff policies have also dragged down market demand. Overall, copper plate/sheet and strip enterprises are currently somewhat pessimistic.