According to SMM, the operating rate in the brass billet industry fell 1.51 percentage points WoW to 48.52% this week. This was mainly suppressed by continuously rising copper prices and strong downstream wait-and-see sentiment. Enterprises generally faced insufficient new orders, and production still relied heavily on previous orders. However, orders for some companies were nearing completion, and subsequent production momentum faced a gap.
On the raw material side, affected by high costs, most enterprises adopted a low raw material inventory strategy. Raw material inventory remained at a low level of 3.9 days this week, while finished product inventories reached 5.77 days. The sales pace significantly lagged behind production, and inventory turnover efficiency slowed down. By sector, order contraction was particularly significant in traditional areas such as building materials, sanitary ware, and valves, becoming the main factor dragging down industry demand.
Looking ahead to next week, with the New Year's holiday approaching, most small and medium-sized copper billet enterprises plan a one-day holiday. Combined with the current tight supply and high prices of raw materials, brass billet enterprises show low enthusiasm for stockpiling. The operating rate is expected to drop a further 0.74 percentage points to 47.78%. In the short term, if copper prices continue to fluctuate at highs, downstream market acceptance will be difficult to improve effectively, and the brass billet industry will continue to operate in the doldrums.
