The off-season for the brass billet industry has arrived earlier than expected, with operating rates of copper billet producers expected to decline by 2.89% next week [SMM Weekly Review of Brass Billet Market]

According to SMM data, the operating rates of brass billet producers stood at 57.4% this week, up slightly by 0.22% WoW, but the increase was lower than expected. The current weak market demand has intensified, with enterprises generally reporting a significant decline in new orders. The characteristics of the off-season in the industry have emerged earlier than usual, and orders from the refrigeration industry, which had previously shown relative stability, have also contracted significantly. Enterprises have reported a sharp drop in orders from small and medium-sized air conditioning producers, with even the most-traded producers experiencing a contraction in order volumes. Overall, the order situation is weaker than expected. This week, enterprises have mainly focused on fulfilling orders on hand. The SMM sample's weekly raw material inventory decreased by 0.41 days WoW to 5.67 days, while finished product inventories increased by 0.05 days to 8.37 days. Looking ahead to next week, given the gradual depletion of orders on hand and the continuous decline in new orders, SMM expects the operating rates of brass billet producers to decline, with a WoW drop of 2.89% to 54.52%.