Copper Wire and Cable Operating Rates Rebounded MoM, Pre-Holiday Stockpiling to Boost Operating Rates Next Week [SMM Wire and Cable Market Weekly Review]

      This week (January 16–22), the SMM copper wire and cable enterprise operating rate was 58.71%, up 2.72 percentage points MoM and up 15.87 percentage points YoY. Specifically, boosted by the phased pullback in copper prices during the week, market wait-and-see sentiment faded, and new orders improved marginally. Although the overall consumption recovery was not yet significant, thanks to the replenishment of new orders, some enterprises have begun adjusting their Chinese New Year holiday arrangements.By sector, previously sluggish State Grid and Southern Grid orders improved marginally, coupled with steady support from automotive industry orders, jointly driving a mild rebound in the industry operating rate. Inventory side, influenced by the phased pullback in copper prices, wire and cable enterprises' willingness to restock strengthened; the raw material inventory ratio increased by 4.74 percentage points MoM, reaching 12,915 mt. Finished product inventories, benefiting from increased downstream orders, showed a destocking trend, down 2.67 percentage points MoM, reaching 18,225 mt. The current inventory structure presents a pattern of "raw material stocking and finished product destocking." Looking ahead to next week, this week's new orders will provide further support for enterprise production scheduling, and with the approaching Chinese New Year holiday, enterprises' willingness to stockpile before the holiday has strengthened. Therefore, SMM expects the copper wire and cable operating rate to increase by 1.52 percentage points MoM to 60.23% next week (January 23–29).