As the Chinese New Year holiday approaches, the operating rate of copper wire and cable is expected to continue pulling back [SMM Wire and Cable Market Weekly Review].

This week (February 6 - February 12), the operating rate of SMM copper wire and cable enterprises was 56.01%, down 4.13 percentage points WoW. This week was the industry's last production week before the Chinese New Year holiday, with most enterprises gradually suspending production and taking holidays by the end of the week. Some enterprises holding orders from State Grid maintained production, with related production schedules basically extending until the last period before the holiday. Inventory side, pre-holiday stockpiling of raw materials by enterprises was basically completed, and coupled with upstream suppliers gradually taking holidays, raw material inventory fell 3.37% WoW this week. Finished product side, enterprises moderately stockpiled to meet post-holiday demand, but due to the Chinese New Year holiday and uncertainty about post-holiday copper price trends, the stockpiling mentality was relatively cautious, and no large-scale stockpiling occurred. Looking ahead to next week, enterprises in the industry will essentially fully enter the Chinese New Year holiday, with only a few enterprises holding orders on hand retaining some capacity to maintain production. SMM expects the operating rate of copper wire and cable to fall 40.81 percentage points WoW to 15.2% next week.