[SMM Analysis: Secondary Copper Rod Sales Continue to Incur Losses, Operating Rate Decline Exceeds Expectations] In May, the operating rate of secondary copper rod was 29.92%, lower than the expected 32.74%, down 3.97% MoM and 12.13% YoY. In May, Sino-US trade tensions eased somewhat, but China still imposed a 10% tariff on all US imports. Therefore, it remained difficult for US secondary copper raw materials to enter the Chinese market, and expectations of a continued decline in overseas supply persisted. The supply of domestically produced secondary copper raw materials was affected by the narrow fluctuations in copper prices...

[SMM Analysis:The Back structure is difficult to sustain ] Since 2024, the price of sulfuric acid in Chinese copper smelters has continued to rise, and the trend of sulfuric acid prices has formed a sharp contrast with the trend of spot processing fees for copper concentrates.

SMM Analysis: According to SMM, the operating rate of copper foil enterprises in May 2025 was 72.16%, up 0.65 percentage points MoM and down 0.11 percentage points YoY...

[SMM Analysis: Strong Profitability of Smelting Acid Supports Copper Smelting Business] SMM believes that the backwardation structure of SHFE will weaken in the future market, and the premise of our following discussion is based on the existing tariff levels in the US.

[SMM Analysis: Terminal Orders Remain Stable, Operating Rates of Copper Foil Enterprises Increase Slightly] According to SMM, the operating rate of copper foil enterprises was 72.16% in May 2025, up 0.65 percentage points MoM and down 0.11 percentage points YoY...

 According to data from SMM, the operating rates of copper billet producers reached 50.61% in May 2025, down 4.36% MoM, indicating a weakening trend in the industry's operations. By scale, the operating rate of large enterprises was 53.42%, that of medium-sized enterprises was 49.54%, and that of small enterprises was 35.87%.

[SMM Analysis: Operating Rate of Secondary Copper Rod Increases Slightly as Order Delivery Deadline Approaches] According to SMM's survey data, the operating rate of secondary copper rod this week was 32.08%, up 4.77 percentage points WoW and down 5.51 percentage points YoY. Meanwhile, the average price difference between copper cathode rod and secondary copper rod was 1,085 yuan/mt this week, narrowing by 4 yuan/mt WoW. In addition, the average discount of secondary copper rod in Jiangxi against copper futures was 428 yuan/mt, widening by 14 yuan/mt WoW. Furthermore, the average discount of secondary copper rod in Jiangxi against copper futures was 414 yuan/mt, widening by 226 yuan/mt WoW...

[SMM Analysis: Copper Prices Fluctuate Downward, Suppliers Unwilling to Stockpile Excessively] As of June 5, copper prices rose by 300 yuan/mt, with the price of bare bright copper in Guangdong also increasing by 300 yuan/mt. Amid the doldrums of copper prices this week, many suppliers of secondary copper raw materials adopted a "quick in, quick out" strategy to sell their goods. Consequently, secondary copper rod enterprises reported a continued improvement in raw material procurement compared to WoW. Moreover, as the delivery date for orders approached, the destocking speed of raw materials at secondary copper rod enterprises accelerated...