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

According to SMM, the operating rate of copper plate/sheet and strip enterprises stood at 67.44% in June 2025, 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 marked the traditional off-season for copper plate/sheet and strip consumption, with sluggish market demand. Coupled with persistently high copper prices, demand overdraft from the previous export rush, and cautious sentiment due to uncertain tariff policies, overall market demand remained weak. New orders saw a significant MoM decline, and production cuts emerged in multiple enterprises after mid-June, with the operating rate weakening in tandem. From the perspective of end-use demand, the demand for high-end electronic components remained moderate, but orders in wind power and electricity sectors declined significantly. Orders from electronics, clothing, and accessories sectors also exhibited off-season characteristics. Additionally, due to weak market demand and intense industry competition, conventional copper plate/sheet and strip products faced significant pressure. Processing fees for brass strips led the decline, with processing fees for copper strips and phosphor copper strips 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%, increasing by 0.22 percentage points MoM. Currently, most plate/sheet and strip enterprises only purchase raw materials as needed, with limited inventory growth. Due to reduced monthly production, the raw material inventory/output ratio showed a slight increase. (Raw material inventory/output ratio = raw material inventory volume / monthly production volume). Finished product inventories were dragged down by weak demand, with the finished product inventory/output ratio reaching 18.06%, increasing by 1.29 percentage points MoM.

According to SMM, during the industry off-season, market demand was poor. Copper prices rose by over 80,000 yuan/mt at the beginning of the month, exacerbating market wait-and-see sentiment. Downstream orders became increasingly cautious. Most plate/sheet and strip enterprises expressed a lack of confidence in July's orders and began reducing production and lowering loads at the beginning of the month. SMM predicts that the operating rate of the copper plate/sheet and strip industry will decline by 3.99 percentage points MoM in July to 63.44%, a significant decrease of 4.33 percentage points compared to the same period last year. The market downturn may persist.