The operating rates of brass billet producers averaged 69.25% in May, down 0.6 percentage point month on month but up 10.12 percentage points year on year, SMM survey showed. Orders at large plants were relatively brisk in May, while those at most small and medium-sized enterprises were poor amid weak demand. The operating rates of copper billet producers increased from 59.13% in the same period of 2022, but were still lower than 73.94% in the same period of 2019 before the outbreak of the COVID-19.
The average operating rates of large, medium-sized and small enterprises stood at 75.37%, 61.22%, and 32.88% respectively. Notes: SMM surveyed 24 producers with a total capacity of 1.19 million mt.
The operating rate of copper rods continued to decline in May, mainly due to insufficient domestic demand. In addition, copper prices dropped to new lows for the year, driving copper scrap suppliers to hold back cargoes. The resulting high raw material prices depressed buying interest of copper billet companies. SMM understood that orders of small and medium-sized copper billet enterprises shrank significantly in May. Some enterprises reduced their production and kept their inventories at a low level. In the face of weak demand, some large-scale enterprises extended the account period and reduced processing fees, thereby expanding their market share. The competition in the copper billet market was more fierce. Only some companies servicing the new energy industry performed well in May.
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