According to SMM data, the operating rate of brass billet producers fell by 0.45 percentage points MoM to 48.87% this week, mainly dragged down by the continued weak demand. On the inventory side, SMM sample inventories showed a dual decline, with days of raw material inventories falling by 0.14 days MoM to 3.74 days, and days of finished product inventories falling by 0.46 days MoM to 6.14 days.
Looking ahead to next week, as the center of copper prices declines, SMM expects consumer demand to receive a slight boost. However, the drop in copper prices has led some suppliers to hold back cargoes, which will pose difficulties for enterprises in raw material procurement and subsequently affect the rebound scope of the operating rate. In summary, SMM expects the operating rate of brass billet producers to rise by 0.64 percentage points MoM to 49.51% next week.