As Year-End Approaches, Enterprises Slow Down Production Pace; Copper Cathode Rod Operating Rate Declines as Expected [SMM SHFE Spot Copper Weekly Review]

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       The weekly operating rate of major domestic copper cathode rod enterprises (12.13-12.19) fell to 80.62%, down 1.75 percentage points MoM, 1.29 percentage points lower than the expected value. Although supported by orders on hand, it still increased 8.96 percentage points YoY, but the YoY growth has slowed. This week, copper prices declined, but as the year-end approaches, downstream maintained just-in-time procurement. Although year-end push-for-annual-target orders still exist, as the month is about to end, some enterprises have gradually slowed their pace, leading to a MoM decline in the operating rate. From the inventory perspective, with the decline in the operating rate, raw material inventories of major domestic copper cathode rod plants decreased 1.83% MoM this week, recording 42,950 mt. Meanwhile, some enterprises experienced inventory buildup of finished products due to slower shipment pace, with finished product inventories of copper cathode rod plants increasing 5.64% MoM, recording 58,100 mt. Looking ahead, as the countdown to 2024 begins, more enterprises are expected to gradually reduce production to recover funds. The operating rate of copper cathode rod enterprises is projected to continue declining to 77.29% next week (12.20-12.26), but YoY growth is expected to remain at 9.7 percentage points.

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