Copper Fox Reports Positive Metallurgical Results at Schaft Creek

This week (6.26-7.2), the enamelled wire industry's operating rate rose by 1.4 percentage points WoW, in line with earlier expectations. On one hand, the pullback in copper prices last week led to an uptick in order taking, prompting enterprises to raise production schedules accordingly. On the other hand, some enamelled wire enterprises supporting air conditioner production benefited from the European air conditioner buying spree, achieving a phased modest increase in orders. However, enterprises generally reported that the sustainability of this increase was weak and could not reverse the off-season trend in the home appliance industry, with overall demand remaining sluggish.

As of Thursday this week, spot copper prices in Shandong were reported at a discount of 90 yuan/mt. Specifically, the market was in a situation of both weak supply and demand. Maintenance at provincial smelters led to tight supply in the Shandong market, giving suppliers confidence to hold prices firm. However, actual market demand was not strong. In the demand off-season, downstream purchasing enthusiasm was low, and transactions during the week were mostly based on rigid demand.