Operating Rates of Copper Wire and Cable Producers Rebounded WoW as Copper Prices Pulled Back and Year-End Sales Promotions Released Demand [SMM Wire and Cable Market Weekly Review]

      This week (October 31 to November 6), the SMM copper wire and cable enterprise operating rate was 63.45%, up 2.66 percentage points WoW but down 23.85 percentage points YoY. On one hand, copper prices experienced a correction, alleviating the previous suppression of demand from high copper prices; on the other hand, some enterprises launched sales promotions to push for their year-end production and sales targets. With these dual positive factors combined, the previously suppressed end-use demand was concentratedly released, leading to an improvement in new orders for the industry, and the enterprise production schedule pace gradually recovered from low levels. By sector, orders from State Grid improved, accompanied by concentrated tenders, providing support for the operating rate. Other sectors also released just-in-time procurement orders as copper prices corrected. Inventory side, previously affected by high copper prices, enterprises generally adopted a conservative strategy of making just-in-time procurement, keeping raw material inventory at low levels. After the copper price correction, many enterprises restocked. This week, the raw material inventory/output ratio increased by 2.17 percentage points, recorded at 13,415 mt. As orders improved, finished product inventories also underwent destocking. This week, the finished product inventory/output ratio decreased by 2.35 percentage points, recorded at 19,105 mt. Looking ahead to next week, enterprises are expected to steadily advance their production schedules, focusing on digesting the new orders received this week. The production pace is expected to maintain a steady rebound trend. Therefore, SMM expects the copper wire and cable enterprise operating rate to increase slightly to 63.67% next week (November 7 to November 13).