Operating Rates of Brass Billet Producers Edged Up This Week, Losses and Weak Demand Constrained Subsequent Production [SMM Brass Billet Market Weekly Review]

       This week (1.23-1.29), the operating rate in the brass billet industry recorded 47.2%, up 0.44 percentage points WoW. According to SMM, enterprise orders remained generally stable during the week. Large enterprises continued active production to fulfill orders, driving a slight rise in the overall industry operating rate. Inventory side, current industry raw material inventory stood at 3.78 days, while finished product inventory days were 5.44 days. Enterprises continued to focus on active destocking, showing weak purchase willingness.

       Looking ahead to next week, affected by wild swings in copper prices, some manufacturers originally planning holidays in early February have started preparing for early shutdowns. Some enterprises reported that current raw material purchase prices are inverted with selling prices, market raw material supply is generally tight, and end-use demand remains weak. Therefore, SMM expects the industry operating rate to decline 1.6 percentage points WoW to approximately 45.6% next week.