Limited Demand Boost, Brass Billet Operating Rate Rebounds Modestly [SMM Brass Billet Market Weekly Review]

       According to SMM data, the operating rate of brass billet enterprises was 47.59% this week, up 0.96 percentage points WoW. In terms of inventory, the days of raw material inventories at sample enterprises fell to 3.82 days, while finished product inventories stood at 5.07 days. Enterprises continued to reduce inventories, leading to a further decline in overall inventory levels.

       Looking ahead to next week, although some enterprises reported a slight improvement in orders compared to the previous period, the recovery in major downstream sectors such as refrigeration remains weak, and other application areas have limited effect in boosting copper billet demand. Most enterprises expect orders to remain largely at current levels until year-end, with significant growth unlikely. Against this backdrop, SMM anticipates that the operating rate in the brass billet industry will rebound by 1.73 percentage points WoW to 49.32% next week. If copper prices do not see a noticeable correction, the industry will still face certain operational pressures, and the rebound in the operating rate is expected to be limited.