Operating Rates of Copper Billet Producers Slightly Increase but Fail to Mask Weak Demand, High Copper Prices Suppress Peak Season Performance of Brass Billet Industry [SMM Brass Billet Market Weekly Review]

       According to SMM statistics, the operating rate of brass billet enterprises was 50.64% this week, up 0.16 percentage points WoW, with the rebound magnitude lower than market expectations. The main restraining factor was that copper prices broke strongly through the 91,000 yuan/mt mark on Thursday, causing a sharp increase in cost pressure for downstream enterprises and a noticeable contraction in new orders. Inventory side, enterprises maintained a cautious strategy of "low raw material, high finished product" inventories, with raw material inventory at 3.8 days and finished product inventory reaching 4.9 days, reflecting the current dilemma of sluggish sales coexisting with cost control.

       Looking ahead to next week, although orders in sectors like refrigeration are expected to recover seasonally in Q4, main demand from construction hardware, sanitary ware, and others remains weak, making it difficult to support an overall industry strengthening. Meanwhile, with copper prices remaining high, downstream willingness to accept is insufficient; the industry is expected to continue a "weak recovery" trend. SMM forecasts the operating rate will drop 0.61 percentage points to 50.03% next week.