This week, the operating rate for copper wire and cable edged up WoW, but downstream caution amid high copper prices persisted, with demand remaining weak. [SMM Wire and Cable Market Weekly Review]

      This week (October 10–October 16), the SMM copper wire and cable enterprise operating rate was 61.91%, up 3.38 percentage points WoW, mainly driven by post-holiday production recovery, but the overall operating level has not yet returned to pre-holiday levels, and it also fell 15.02 percentage points YoY. Currently, high copper prices continue to suppress downstream demand, with most enterprises maintaining just-in-time procurement pace; some orders on hand are being delivered later after negotiation with customers due to inverted pricing relative to spot prices, and enterprises prioritize only those orders that need to be completed on time. By sector, although orders from State Grid were released, downstream players are not in a hurry to pick up goods due to high copper prices, generally adopting a "order first, wait-and-see later" strategy, waiting for copper prices to fall back before arranging production. Overall industry demand improved limitedly, and the wait-and-see sentiment remains strong. Inventory side, enterprises generally control raw material procurement, using existing inventory to ensure just-in-time production; this week, the raw material inventory/output ratio fell 2.03 percentage points, recorded at 13,745 mt. To control costs, enterprises tend to reduce operating rates and accelerate finished product destocking; this week, the finished product inventory/output ratio decreased 3.73 percentage points, recorded at 20,755 mt. Looking ahead to next week, as copper prices have been fluctuating at highs for some time, downstream acceptance of prices is gradually and slowly improving, and some just-in-time orders are expected to be released, providing some support to the operating rate; hence, SMM expects the copper wire and cable enterprise operating rate to edge up to 62.44% next week (October 17–October 23).