According to SMM data, the comprehensive operating rate of sampled brass billet enterprises in August was 42.63%, down 1.63 percentage points MoM and down 1.24 percentage points YoY. In August, the copper billet industry had not yet emerged from the traditional consumption off-season, while copper prices fluctuating at highs kept market pressure mounting, with industry prosperity continuing to pull back and enterprise production remaining under pressure. 
On the raw material side, domestic and imported brass prices stayed high, continuously pushing up downstream procurement costs. During the month, the high-price pattern of raw materials showed no fundamental loosening, and the squeeze on processing enterprises' profit margins continued to amplify. Under high cost pressure, sampled enterprises' production enthusiasm was notably suppressed, with some enterprises passively adjusting their production schedule pace and operating performance weakening further. 
On the demand side, high copper prices kept most end-user clients in a strong wait-and-see sentiment, reluctant to place orders rashly. Downstream restocking willingness at low prices was insufficient, with only a small amount of rigid demand orders released slowly, and overall market trading sentiment remained subdued. As a result, enterprise finished product inventory destocking was hindered, with some showing signs of passive accumulation, and the pace of capital recovery slowed down. Small and medium-sized enterprises, due to relatively single order structures and weaker risk resistance, faced particularly prominent capital and order pressure, with production and operations generally under pressure.
Looking ahead to September, SMM expects the industry operating rate to rebound 0.59 percentage points MoM to 43.22%, but still down 1.88 percentage points YoY, with the overall trend remaining in the doldrums. From enterprise feedback, new orders at the beginning of the month were still insufficient, and the market has not yet shown clear signs of recovery. However, some wait-and-see clients previously suppressed by high prices may gradually release rigid demand orders, and with the Mid-Autumn Festival holiday approaching at the end of September, some downstream enterprises have early stockpiling demand, which is expected to drive a modest recovery in operating rates in stages. It is worth noting that some enterprises have also chosen to halt production or conduct maintenance during the holiday, constraining the room for operating rate recovery. Overall, while the brass billet industry's prosperity in September is expected to see a modest repair from August, the lack of strong demand drivers means the rebound is expected to be limited, and the industry as a whole will continue to operate in a weak pattern.
