October Copper Foil Production and Sales Increased Overall, Expected to be Dragged Down by Electronic Circuit Copper Foil in November [SMM Analysis]

According to SMM data, China's copper foil monthly production in October 2024 was 96,300 mt, up 2.16% MoM. Among them, China's lithium battery copper foil monthly production in October was 61,700 mt, up 0.65% MoM; electronic circuit copper foil monthly production in October was 34,600 mt, up 4.96% MoM. In October 2024, lithium battery copper foil shipments were 52,900 mt, up 1.08% MoM; electronic circuit copper foil shipments were 30,700 mt, up 5.04% MoM.

In October, boosted by trade-in policies, end-use orders increased significantly, and both lithium battery copper foil and electronic circuit copper foil production and sales rose. Specifically, for lithium battery copper foil, downstream demand was robust across various sectors. According to SMM data, China's anode materials production in October 2024 increased by 6% MoM. In the NEV sector, NEV production and sales continued to grow in October, with downstream rushing for production due to the phasing out of new energy subsidies; in the energy storage sector, the year-end grid connection deadline is approaching, and overseas demand was also robust. For electronic circuit copper foil, after the off-season, demand continued to recover in September and October, with notable orders related to automobiles and servers.

Looking ahead, SMM expects the overall copper foil production in November 2024 to decline to 94,800 mt. Among them, lithium battery copper foil production is expected to be 61,500 mt, and electronic circuit copper foil production is expected to be 33,300 mt; lithium battery copper foil shipments are expected to be 52,600 mt, down 0.62% MoM, and electronic circuit copper foil shipments are expected to be 29,500 mt, down 3.89% MoM.

The decline in overall copper foil production in November is mainly due to the drag from electronic circuit copper foil. According to SMM, the end-use sector for lithium battery copper foil is expected to continue the rush for installations in November, with downstream demand remaining robust, but China's anode materials production is expected to decrease slightly by 1% MoM. For electronic circuit copper foil, end-use consumer electronics industry orders are showing weakness, combined with lower copper prices suppressing downstream stocking sentiment, production and sales are expected to decline significantly.