Limited peak-season boost restricts upside for brass billet operating rates [SMM Brass Billet Market Weekly Review]

This week (10.3-11.05), the operating rate of SMM brass billet sample enterprises was 48.23%, up 0.32 percentage points WoW.Copper prices pulled back this week, easing cost pressure on enterprises to some extent. Most brass billet enterprises saw a marginal rebound in orders, driving operating rates slightly higher. However, the tight supply of recycled brass raw materials persisted, with ex-China suppliers holding back from selling. Raw material procurement pressure remained significant, and limited improvement in processing margins constrained production volume. On the downstream demand side, orders for plumbing and valve fittings remained relatively firm, serving as the main support for current orders, while demand in sectors such as hardware fittings was weak, with production largely scheduled based on orders and limited initiative to stockpile. This week, overall inventory at sample enterprises remained at low levels, and enterprises stayed cautious about restocking raw materials.

Looking ahead to next week (11.06-11.12), SMM expects the operating rate of brass billet sample enterprises to edge up to 48.29%, up only 0.06 percentage points WoW, with the increase narrowing.Market expectations for future orders are generally mediocre, and the raw material shortage is unlikely to improve significantly in the short term, continuing to constrain capacity release. The industry's "underperform in peak season" pattern persists, making it difficult for operating rates to deliver an upside surprise.