End-User Demand Continues to Heat Up, China's Copper Foil Industry Operating Rates Keep Climbing [SMM Analysis]

SMM September 8 News:

According to SMM, China's copper foil enterprises recorded an operating rate of 78.44% in August 2025, up 1.17 percentage points MoM and 9.71 percentage points YoY. By enterprise size, large enterprises registered an operating rate of 84.04%, medium-sized enterprises at 50.79%, and small enterprises at 62.04%. By sector, electronic circuit copper foil posted an operating rate of 78.07%, up 0.69 percentage points MoM and 9.59 percentage points YoY, while lithium battery copper foil reached 78.64%, up 1.41 percentage points MoM and 9.77 percentage points YoY. The overall operating rate of the copper foil industry is expected to climb further to 79.05% in September 2025.

Copper Foil Enterprise Operating Rate Hits 78.44% in August 2025

Driven by strong end-user orders, China's copper foil enterprises achieved a new yearly high in operating rates in August 2025. Notably, lithium battery copper foil saw robust downstream demand. SMM data shows that total lithium battery production surged 11.83% MoM in August. On the power battery side, end-user automakers actively stockpiled for the September-October peak season and began preparing for year-end volume rush. The ESS sector recorded even more significant order growth, with China's integrators and project owners maintaining high activity, while the U.S. tariff extension provided momentum for overseas orders. For electronic circuit copper foil, low and mid-end product orders showed mediocre performance, while AI and 5G-related demand remained strong, with high-end products like RTF and HVLP facing undersupply.

Shipment Growth Drives Down Finished Product Inventories in August

The finished product inventory/output ratio in the copper foil industry fell 0.92 percentage points MoM to 13.75% in August, while raw material inventory ratio edged up 0.01 percentage points MoM to 16.90%. Supported by downstream order growth, overall copper foil shipments rose 2.03 percentage points MoM, with lithium battery copper foil shipments up 2.83 percentage points MoM, further reducing finished product inventories.

Copper Foil Industry Operating Rate Forecast to Rise to 79.05% in September 2025

SMM projects the overall operating rate of copper foil enterprises to reach 79.05% in September 2025, up 0.61 percentage points MoM and 4.42 percentage points YoY. Lithium battery copper foil operating rate is expected at 78.79%, up 0.16 percentage points MoM and 3.83 percentage points YoY, while electronic circuit copper foil is forecast at 79.56%, up 1.49 percentage points MoM and 5.53 percentage points YoY.

SMM expects China's copper foil enterprises' operating rate to continue rising overall in September, with both lithium battery copper foil and electronic circuit copper foil showing growth. For lithium battery copper foil, the new energy vehicle sector enters its peak sales season, driving sustained growth in downstream power battery stockpiling demand. ESS sector, domestic and overseas demand are both expected to remain optimistic, with US tariff extensions and the One Big Beautiful Bill Act (OBBBA) continuing to fuel export rush demand. SMM forecasts lithium battery production to increase 4.94% MoM in September. However, as lithium battery copper foil enterprises' capacity utilization rates have already reached relatively high levels, many companies will face "no room for further increases," resulting in limited overall operating rate growth.

For electronic circuit copper foil, the market will gradually enter its traditional peak consumption season in September, with downstream stockpiling demand emerging ahead of the National Day holiday. Additionally, copper prices' center has moved higher entering September, which will also provide some impetus to downstream orders.