Operating Rates Rebound Post-Holiday, Inventory Remains Low Amid High Copper Prices [SMM Brass Billet Market Weekly Review]

       SMM data showed that this week, the operating rate of brass billet producers was 46.82%, up 5.52 percentage points WoW. This was mainly due to the gradual recovery of production after the National Day holiday, which drove the operating level to rebound. In terms of inventory, the raw material inventory of sample enterprises was 4.33 days, and finished product inventories were 5.82 days. Affected by copper prices fluctuating at highs, enterprises remained generally cautious in stockpiling, and inventory levels remained low.

        Looking ahead to next week, enterprise order performance is expected to diverge, with some customers showing fear of rising prices and placing orders actively, while others still adopt a wait-and-see attitude. As time enters the second half of October, demand from the refrigeration industry, such as valves, is expected to be gradually released, but traditional areas like plumbing and sanitary ware still show no significant improvement. Overall, the operating rate of the brass billet industry next week is expected to increase slightly by 0.42 percentage points to 47.24%. Under the combined influence of high copper prices and weak traditional demand, the rebound in the operating rate is limited.