Copper prices fluctuate at highs, new orders shrink, and weekly operating rate of copper cathode rod drops more than expected [SMM Weekly Review of Copper Cathode Rod Production]

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       Copper cathode rod: The weekly operating rate of major domestic copper cathode rod enterprises (5.16-5.22) unexpectedly declined to 70.64%, down 2.62 percentage points WoW, 4.23 percentage points lower than expected, and up 6.18 percentage points YoY. Currently, there is still underlying support for copper prices, which are hovering at highs. Premiums and discounts are also high after contract rollover, and downstream enterprises are showing a wait-and-see attitude. Although shipments from copper cathode rod enterprises are basically stable, new orders have weakened somewhat, with some large enterprises unexpectedly cutting production, leading to a decline in the operating rate this week. In terms of specific inventories, the raw material inventory of copper cathode rod enterprises increased slightly by 1.77% WoW this week, reaching 34,550 mt. Due to production cuts by several large enterprises during the week, the finished product inventories of copper cathode rod enterprises decreased by 8.51% WoW, reaching 54,800 mt. Looking ahead, although current consumption has not yet recovered and the overall market performance is weak, with multiple copper cathode rod enterprises cutting production and reducing inventories during the week, there will be some recovery next week. It is expected that the operating rate of copper cathode rod enterprises will recover to 77.61% next week (5.23-5.29), driven by production resumptions, up 6.98 percentage points WoW and 19.03 percentage points YoY.