Slight Decline in Copper Wire and Cable Operating Rate, Order Recovery Supports Subsequent Rebound [SMM Wire and Cable Market Weekly Review]

      This week (December 5-11), the SMM operating rate for copper wire and cable enterprises was 66.31%, down 0.81 percentage points WoW and down 24.72 percentage points YoY. The overall industry production schedule slowed down this week, although some companies reported slight signs of recovery in new orders. A mid-week phased pullback in copper prices triggered a wait-and-see sentiment among downstream players, with customers postponing purchases over concerns about further price declines. After copper prices stabilized and rebounded, end-user procurement demand was gradually released, and the market trading atmosphere improved. By sector, as the year-end approaches, rigid demand from various downstream sectors was released in an orderly manner, supporting the operating rate. Inventory side, stimulated by the mid-week copper price pullback, wire and cable enterprises began necessary restocking operations; the raw material inventory ratio increased by 0.61 percentage points this week, recorded at 13,140 mt. Downstream cargo pick-up occurred, and finished product inventories decreased by 0.19 percentage points, recorded at 18,600 mt. Looking ahead to next week, with marginal improvement in new orders, enterprise enthusiasm for production scheduling is steadily increasing; thus, SMM expects the operating rate for copper wire and cable enterprises to fall to 67.04% next week (December 12-18).