Copper Prices Remain High, Consumption Weak, Operating Rate of Copper Cathode Rod Rises Due to Production Resumptions [SMM Weekly Review of Copper Cathode Rod Production]

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       Copper cathode rod: The weekly (5.23-5.29) operating rate of major domestic copper cathode rod enterprises rose MoM to 75.90%, up 5.27 percentage points MoM, 1.71 percentage points lower than the expected value, and 17.32 percentage points higher YoY. This week, copper prices hovered at highs, while end-use demand remained weak. Downstream enterprises maintained a wait-and-see attitude. New orders from copper cathode rod enterprises weakened MoM during the week, and consumption was significantly worse compared to April. However, as enterprises that had previously halted or cut production gradually resumed operations, and copper prices were at a high level during the same period last year, the operating rate of copper cathode rod enterprises increased both MoM and YoY this week, but fell short of expectations. In terms of specific inventories, with the resumption of production and some stockpiling demand ahead of the Dragon Boat Festival holiday, the raw material inventory of copper cathode rod enterprises increased 12.45% MoM to 38,850 mt. Finished product inventories of copper cathode rod enterprises increased 5.29% MoM to 57,700 mt this week. Looking ahead, despite the Dragon Boat Festival holiday, copper cathode rod enterprises are expected to further mitigate the impact of production halts and cuts. It is anticipated that the operating rate of copper cathode rod enterprises will rise slightly MoM to 77.14% next week (5.30-6.5), up 1.23 percentage points MoM and 10.43 percentage points YoY.