Weekly Operating Rate of Brass Billet Producers Fell by Over 7 Percentage Points, Post-Holiday Rebound Limited [SMM Brass Billet Market Weekly Review]

This week (5.1-5.7), the operating rate of the brass billet industry was 44.67%, down 7.89 percentage points WoW. Affected by multiple factors including production cuts by some enterprises during the Labour Day holiday (1-2 days off), weak new orders, and persistently high raw material prices, the operating rate pulled back notably this week. Meanwhile, disrupted by factors such as invoice issues, recycled brass raw materials supply remained tight, and enterprise raw material inventory continued to decline. Looking ahead to next week (5.8-5.14), as the holiday impact fades, SMM expects the industry operating rate to rebound 7.73 percentage points WoW to 52.4%. However, judging from enterprise order-taking feedback, the industry has gradually entered the traditional off-season, and operating levels are unlikely to recover to pre-holiday levels. In addition, the tight raw material situation remains unchanged, and enterprises are becoming more cautious in taking orders due to concerns about failing to deliver on time.