Operating Rate of Copper Wire and Cable This Week Was 65.44%, Demand Across Industries Remained Unimproved as National Day Approached [SMM Wire and Cable Market Weekly Review]

      This week (September 19-25), the SMM copper wire and cable enterprise operating rate was 65.44%, down 0.41 percentage points MoM and 32.24 percentage points YoY, falling short of expectations by 1.23 percentage points. Copper prices briefly corrected but quickly rebounded above 80,000 yuan/mt. This high level significantly boosted the wait-and-see sentiment among downstream enterprises, with most slowing down their ordering pace to avoid cost risks, leading to a disconnect in new order intake. Insufficient order follow-through was directly transmitted to the production side, forcing enterprises to adjust their production schedules, slowing the overall production pace, and ultimately causing a slight decline in the operating rate. By sector performance, as the National Day holiday approaches, demand across various fields showed no signs of seasonal improvement. Both the traditional power and construction industries, as well as the previously relatively stable automotive sector, continued their weak operating state from the previous period, with no new highlights emerging to boost overall demand. Inventory side, this year's National Day holiday period for wire and cable enterprises increased YoY, and pre-holiday stockpiling was weaker than the same period last year. This week, the sample enterprises' raw material inventory/output ratio rose only 1.75 percentage points, recorded at 14,540 mt, highlighting the characteristic of just-in-time procurement. Finished product inventories further accumulated due to the continued slowdown in downstream cargo pick-up speed. This week, the finished product inventory/output ratio increased by 1.19 percentage points, recorded at 21,260 mt, indicating increased inventory pressure compared to the previous period. Looking ahead to next week, the inhibitory effect of the market environment on operations is expected to become more apparent. After copper prices surged on Thursday, the market reaction was calm, with downstream enterprises still mainly adopting a wait-and-see approach, resulting in virtually no supplementary new orders. Simultaneously, with the National Day holiday approaching, most enterprises will gradually enter a production halt and holiday phase. The shortened production time directly constrains enterprise operations. Therefore, SMM expects the copper wire and cable enterprise operating rate to decline to 59.72% next week (September 26 - October 2).