Operating rate of copper plate/sheet and strip continued to decline in June; "off-season test" continues [SMM analysis]

》Check SMM copper quotes, data, and market analysis

》Click to view historical price trends of SMM spot copper

     According to SMM, the operating rate of copper plate/sheet and strip enterprises in June 2025 was 67.44%, down 2.68 percentage points MoM and 0.12 percentage points YoY.Among them, the operating rate of large enterprises was 70.67%, that of medium-sized enterprises was 64.09%, and that of small enterprises was 62.58%.

        June entered the traditional off-season for copper plate/sheet and strip consumption, with sluggish market consumption demand and high copper prices. Additionally, the demand overdraft caused by the previous export rush and the cautious sentiment brought about by uncertain tariff policies led to continued poor overall market demand. New orders declined sharply MoM, and production cuts occurred in multiple enterprises after mid-June, with the operating rate weakening synchronously.Demand side, the demand for high-end electronic components performed moderately, but orders in wind power and electricity sectors declined significantly. Orders from terminals such as electronics and clothing accessories also showed off-season characteristics. Moreover, due to weak market demand and fierce industry competition, conventional copper plate/sheet and strip products were under significant pressure.The RC for brass strip led the decline, with the RCs for copper strip and phosphorus copper strip also declining to varying degrees, posing severe challenges to industry profits.

In terms of inventory,the raw material inventory/output ratio of copper plate/sheet and strip sample enterprises in June was 15.13%, up 0.22 percentage points MoM.Currently, most plate/sheet and strip enterprises purchase raw materials as needed, with limited inventory increases. Due to reduced monthly production, the raw material inventory/output ratio showed a slight increase. (Raw material inventory/output ratio = raw material inventory/monthly production).Finished product inventories were dragged down by poor demand, with the finished product inventory/output ratio reaching 18.06%, up 1.29 percentage points MoM.

According to SMM, during the industry off-season with poor market demand, copper prices rose by over 80,000 yuan/mt at the beginning of the month, exacerbating the market's wait-and-see sentiment. Downstream orders became increasingly cautious.Most plate/sheet and strip enterprises expressed insufficient confidence in July's orders and had already begun to cut production and reduce loads at the beginning of the month. SMM predicts that the operating rate of the copper plate/sheet and strip industry in July will decline by 3.99 percentage points MoM to 63.44%, a significant decrease of 4.33 percentage points YoY, and the market downturn may continue.