Operating Rates of Copper Cathode Rod Producers Decline, Inventory Accumulates; Progress of Production Resumptions Next Week to Be in Doubt [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 (5.30-6.5) declined MoM to 74.87%, down 1.03 percentage points MoM, 2.27 percentage points lower than the expected value, and the YoY growth rate fell to 8.16 percentage points. As the off-season factor emerged in June, and copper prices remained firm this week, suppressing downstream stocking desire. Coinciding with the Dragon Boat Festival holiday, some enterprises exceeded expectations by cutting production and destocking, causing the operating rate to decline this week, contrary to expectations. In terms of specific inventory, due to the operating rate not recovering as expected, the raw material inventory of copper cathode rod enterprises decreased by 4.63% MoM to 37,050 mt this week. Most copper cathode rod enterprises reported a certain weakening in new orders and shipment efficiency this week. The finished product inventories of copper cathode rod enterprises increased by 3.03% MoM to 59,450 mt this week. Looking ahead, with the resumption of production by some large enterprises, the operating rate of copper cathode rod enterprises is expected to rise slightly MoM to 77.53% next week (6.6-6.12), up 2.66 percentage points MoM and 12.79 percentage points YoY. However, it should be noted that most enterprises currently hold a relatively pessimistic outlook for the market. If copper prices do not significantly correct, there is still a possibility that the operating rate of copper cathode rods next week may fall short of expectations.