The operating rate of major copper cathode rod enterprises in China this week (July 10 – July 16) was 65.1%, down 2.96 ppt WoW, 0.06 ppt below expectations, and 9.12 ppt YoY. Copper prices fluctuated at highs this week. Combined with the current futures spread structure, downstream wait-and-see sentiment was strong, and purchase willingness was weak. New order growth for copper cathode rod enterprises was limited, and enterprises proactively reduced production loads. Downstream wire and cable and enamelled wire sectors weakened in tandem. Affected by the traditional off-season, demand showed a seasonal pullback, further dragging down the operating rate of copper cathode rods. On the inventory side, high premiums combined with high futures spreads suppressed enterprises' raw material purchasing willingness, and raw material inventories fell 2.7 ppt WoW. Weak downstream orders led to a slowdown in the cargo pick-up pace, and finished product inventories rose 3.42 ppt WoW. Looking ahead to next week (July 17 – July 23), the current high premium situation is expected to persist. Combined with persistently sluggish downstream demand, some enterprises are gradually scheduling equipment maintenance. SMM expects the operating rate of copper cathode rod enterprises next week to fall 1.89 ppt WoW to 63.21%.
![Market trading remained sluggish, while North China spot premiums held steady [SMM North China Spot Copper]](https://imgqn.smm.cn/usercenter/LbxVx20251217171714.jpeg)
![Arrivals increased, suppliers proactively lowered prices to sell, and spot trades were active [SMM South China Spot Copper].](https://imgqn.smm.cn/usercenter/OsOmo20251217171709.jpg)
