AI Data Centers as a "Super Engine" for 2026 Copper Demand

[SMM Copper Cathode Rod Flash] Currently, the purchase willingness in the downstream market for copper cathode rod remains weak, with the off-season effect becoming prominent. Against the backdrop of insufficient order growth, producers are proactively curbing production, and overall operating pressure across the industry is emerging. The operating rate is expected to drop 1.89 percentage points WoW next week.

[SMM Copper Cathode Rod Express] Over the past week, inventories at domestic copper cathode rod enterprises showed a divergent pattern. Affected by high premiums and wide price spreads between futures contracts, enterprises had insufficient raw material purchase willingness, and raw material inventories declined WoW; downstream orders were weak, the end-user cargo pick-up pace slowed, and industry finished product inventories rose WoW.

[SMM Copper Cathode Rod Flash] The operating rate of copper cathode rod producers fell 2.96 percentage points WoW this week. High copper prices combined with the price spread between futures contracts fueled a strong wait-and-see sentiment among downstream players, with enterprises receiving limited new orders and proactively lowering production loads. Downstream sectors such as wire and cable and enamelled wire entered their traditional off-season, and seasonal demand weakness further weighed on operating performance.