Operating Rate Rises for 8th Consecutive Month, Copper Foil Industry Ends 2025 on a High Note [SMM Analysis]

SMM January 12 News：

According to SMM, the operating rate of Chinese copper foil enterprises reached 88.20% in December 2025, up 1.90 percentage points MoM and up 12.56 percentage points YoY. Among them, the operating rate for large enterprises was 92.11%, for medium-sized enterprises 69.46%, and for small enterprises 73.82%. By segment, the operating rate for electronic circuit copper foil was 84.12%, up 1.41 percentage points MoM and up 7.14 percentage points YoY; the operating rate for lithium battery copper foil was 90.35%, up 2.18 percentage points MoM and up 15.46 percentage points YoY. The overall operating rate for the copper foil industry is expected to climb further to 88.72% in January 2026.

Copper Foil Enterprise Operating Rate at 88.20% in December 2025

The operating rate of the copper foil industry achieved its eighth consecutive monthly increase in December, reaching a new annual high and perfectly concluding 2025. On the power battery side, downstream year-end pushes for annual targets supported sustained high demand; the energy storage sector continued its strong performance. Demand for electronic circuit copper foil was also optimistic, with overseas orders due to stockpiling by enterprises for the Christmas holiday. Additionally, the rapid rise in copper prices prompted downstream enterprises that settle based on the previous month's (M-1) copper price to place concentrated orders.

Copper Foil Shipments Increase in December

The finished product inventory/output ratio for the copper foil industry rose 0.25 percentage points MoM to 10.03% in December, while the raw material inventory ratio fell 0.55 percentage points MoM to 14.74%. Overall copper foil shipments increased 3.59% MoM, with lithium battery copper foil shipments up 3.40% MoM and electronic circuit copper foil shipments up 3.99% MoM.

Copper Foil Industry Operating Rate Forecast to Rise to 88.72% in January 2026

SMM expects the overall operating rate for copper foil enterprises to be 88.72% in January 2026, up 0.52 percentage points MoM and up 21.60 percentage points YoY. The operating rate for lithium battery copper foil is projected at 90.92%, up 0.56 percentage points MoM and up 25.74 percentage points YoY. The operating rate for electronic circuit copper foil is forecast at 84.55%, up 0.43 percentage points MoM and up 13.65 percentage points YoY.

SMM expects the operating rate of Chinese copper foil enterprises to maintain its upward trend in January. From an end-use demand perspective, as January 2026 begins, power battery production schedules are starting to see a seasonal pullback due to the approaching Chinese New Year holiday, but the overall decline is relatively contained. However, battery cell manufacturers' own inventory levels are too low, necessitating restocking. For energy storage, downstream expectations point to a stronger-than-usual off-season, with both domestic and overseas orders projected to grow optimistically. Overall, downstream enterprises have raw material stocking demand ahead of the Chinese New Year period, providing support for copper foil demand.