The operating rate of copper cathode rod plants rebounded slightly this week, weighed down by new orders, and next week, production resumptions will drive the operating rate to rise. [SMM Copper Cathode Rod Weekly Review]

The operating rate of major copper cathode rod enterprises in China stood at 65.61% for the week of June 26 – July 2, up 0.38 percentage points MoM, down 2.16 percentage points from expectations, and up 1.87 percentage points YoY. Copper prices consolidated and stabilized this week. Enterprises reported limited growth in new orders, and actual production fell short of earlier expectations, constrained by two factors: first, enterprises that had cut production earlier had not yet fully resumed normal operations; second, new orders in the market provided insufficient support, prompting rod mills to lower their production schedules, which ultimately only pushed the operating rate slightly higher. By end-use industry, cables and enameled wire relied on earlier orders on hand to maintain a slight increase in operating rates this week. On the inventory side, enterprises’ raw material purchases were mainly restocking on demand, with raw material inventory rising 0.7% MoM; downstream end-users slowed their pace of picking up goods, and finished product inventories increased 2.81% MoM. Looking ahead to next week (July 3 – July 9), as enterprises that cut production earlier gradually resume production, SMM expects the operating rate of copper cathode rod enterprises to rise 2.39 percentage points MoM to 68%.