Brass Billet Operating Rate Slightly Declines, Inventory Remains Cautious Amid High Copper Prices [SMM Brass Billet Market Weekly Review]

This week, the brass billet industry operated steadily overall, with operating rates dropping back slightly. SMM data shows the operating rate of brass billet enterprises this week was 46.63%, down 0.38 percentage points WoW. Inventory side, sample enterprises' raw material inventory fell to 3.94 days, while finished product inventories stood at 5.37 days. Affected by copper prices fluctuating at highs, enterprises' stockpiling strategies were generally cautious, leading to a further decline in overall inventory levels.

Looking ahead to next week, the industry still faces dual pressures from high costs and weak demand. Currently, most end-users place orders based on rigid demand, with only a few appropriately restocking due to bullish expectations, resulting in limited new orders overall. Therefore, SMM expects the operating rate of the brass billet industry to drop 0.26 percentage points WoW to 46.76% next week. Without a significant pullback in copper prices, the industry will remain under pressure, with little chance of significant improvement.