High Copper Prices Weigh on Copper Plate

According to SMM, the overall operating rate of copper plate/sheet and strip enterprises in October 2025 was 64.97%, down 1.05 percentage points MoM and a significant decrease of 7.76 percentage point.

The seasonal peak typically seen in October for the copper plate/sheet and strip industry did not materialize this year. Beyond the temporary impact of the National Day holiday, the persistent rise in copper prices after the holiday became a key constraint. According to SMM, copper prices strengthened rapidly after the holiday, directly dampening procurement enthusiasm among downstream manufacturing enterprises, with small copper plate/sheet and strip producers experiencing particularly notable order declines. End-use demand failed to release as expected, leading to weaker seasonal characteristics and overall soft operating rates for copper plate/sheet and strip enterprises.

Processing fee side, the copper plate/sheet and strip market weakened overall in October, with soft demand and intensified competition driving adjustments. Due to poor demand, competition among enterprises intensified, with mainstream H65 brass strip processing fees returning to around 1,000 yuan/mt. The decline in T2 copper strip processing fees was more pronounced, and market involution continued to intensify. It's understood that several enterprises offered prices around 2,500 yuan/mt in October, further pulling down industry processing fee levels, impacting market price stability and profit margins for copper strip.

Inventory side, finished product inventories for copper plate/sheet and strip enterprises stood at 5.78 days in October, up slightly by 0.14 days MoM from September. Affected by high copper prices, downstream procurement cost pressures increased, cargo pick-up pace slowed, pushing industry inventories slightly higher.

Looking ahead to the copper plate/sheet and strip market in November, the traditional seasonal peak effect is still unlikely to emerge under continued high copper price constraints. Breaking down by end-use sector, demand from new energy, electronics, and electrical sectors remains stable, supporting good order growth for related copper plate/sheet and strip. However, demand from traditional downstream sectors like home appliances, traditional hardware, daily consumer goods, and apparel accessories continues to show mediocre performance, weighing on the market. Additionally, some enterprises adjusted November production schedules due to lower order intake in October. Considering various factors, the operating rate for copper plate/sheet and strip enterprises is expected to rebound to 66.57% in November, up 1.6 percentage points MoM from October, but down 6.98 percentage points YoY.