Operating Rates of Copper Wire and Cable Enterprises Declined Both YoY and MoM; High Copper Prices Suppressed Demand, Leading to Production Slowdown [SMM Wire and Cable Market Weekly Review]

      This week (October 24-30), the operating rate of SMM copper wire and cable enterprises was 60.8%, down 1.54 percentage points MoM and down 20.22 percentage points YoY. Persistently high copper prices continued to suppress downstream demand, which remained generally weak. Most customers maintained just-in-time procurement, with some previous orders being delivered later, and enterprise production pace slowed accordingly. By sector, orders in the automotive wiring harness segment remained stable, while orders from State Grid were primarily for essential needs. Most other sectors faced dual pressure from sluggish end-use demand and high copper prices, with new orders clearly under pressure. Inventory side, enterprises maintained cautious procurement, strictly stocking raw materials based on order requirements. The raw material inventory/output ratio fell 2.74 percentage points this week to 13,130 mt. As production activities gradually slowed, finished product inventories also declined. The finished product inventory/output ratio dropped 2.98 percentage points this week to 19,565 mt. Looking ahead to next week, with the arrival of November, some enterprises began preparing for annual production targets. However, against the backdrop of no significant improvement in overall demand and continued pressure from high copper prices, the market maintained just-in-time procurement, leaving limited room for a rebound in the operating rate. Therefore, SMM expects the operating rate for copper wire and cable enterprises to increase slightly to 61.24% next week (October 31-November 6).