Copper foil production and sales in September reached an annual high, with a slight decline expected in October [SMM Analysis]

According to SMM data, China's copper foil monthly production in September 2024 was 94,300 mt, up 8.58% MoM. Specifically, lithium battery copper foil production was 61,300 mt, up 8.85% MoM; electronic circuit copper foil production was 33,000 mt, up 8.10% MoM. In September 2024, lithium battery copper foil shipments were 52,300 mt, up 9.29% MoM; electronic circuit copper foil shipments were 29,300 mt, up 8.07% MoM.

Boosted by the traditional "September-October peak season," China's copper foil production and sales reached an annual high, with significant growth in both lithium battery and electronic circuit copper foil. This trend was partly due to increased downstream stocking demand before the National Day holiday and a rise in copper prices in late September, which stimulated downstream purchasing demand.

Specifically, in the lithium battery copper foil sector, end-use orders increased overall. According to SMM data, China's anode materials production in September 2024 increased by 11% MoM. In the power sector, automotive production and sales rose steadily; in the energy storage sector, the iteration of new battery cell specifications smoothly boosted demand; and in the consumer goods sector, year-end stocking demand also increased orders. In the electronic circuit copper foil sector, the market shifted from off-season to peak season, downstream inventory was digested, end-use orders rebounded, and after the high-temperature weather ended, copper foil storage was no longer affected.

Looking ahead, SMM expects overall copper foil production in October 2024 to slightly decline to 93,600 mt. Lithium battery copper foil production is expected to be 60,900 mt, and electronic circuit copper foil production is expected to be 32,600 mt; lithium battery copper foil shipments are expected to be 51,900 mt, down 0.93% MoM, and electronic circuit copper foil shipments are expected to be 28,900 mt, down 1.15% MoM.

SMM forecasts that downstream demand for lithium battery copper foil will remain high in October, but China's anode materials production is expected to decrease slightly by 2% MoM. As copper foil TC/RC remains low, some companies may choose to control the pace of production and sales. Additionally, some downstream companies halted operations during the National Day holiday, leading to an increase in finished product inventories, and copper foil production and sales are expected to see a slight decline in October.