SMM data shows that the operating rates of brass billet producers fell by 0.32 percentage points MoM to 49.32% this week, primarily due to weak demand for continuous casting billets and high copper prices suppressing orders. The inventory of raw materials in SMM's sample decreased by 0.16 days to 3.88 days, while finished product inventories increased by 0.21 days to 6.6 days.

Looking ahead to next week, the pattern of weak demand is expected to persist. Although orders for extruded billets are performing slightly better than those for continuous casting billets, most enterprises still focus on producing continuous casting billets. Therefore, against the backdrop of weak orders, finished product inventories are expected to continue to rebound. SMM forecasts that the weekly operating rates of brass billet producers will decline by 0.26 percentage points next week to 49.06%.