Copper Price Fluctuations Affected Enterprise Orders, Cable Operating Rates Rose Slightly This Week [SMM Wire and Cable Market Weekly Review]

This week (May 15-21), the SMM operating rate of copper wire and cable enterprises came in at 66.87%, up 0.97 percentage points WoW and down 15.47 percentage points YoY. Copper prices fell first and then rose during the week. During the price pullback phase, downstream placed orders as needed, briefly boosting a recovery in orders, but order momentum pulled back once copper prices rebounded. On the end-use demand front, some power grid orders were released and some spot orders in the market edged up, while demand in other sectors remained mediocre. Inventory side, raw material inventory increased 3.2% WoW, mainly because enterprises restocked on rigid demand during the copper price pullback. Meanwhile, some downstream enterprises took the opportunity to pick up goods, driving slight destocking, with finished product inventories down 2.51% WoW. Looking ahead to next week, the operating rate is expected to rebound due to production scheduling of new orders. However, enterprises' ability to take orders remains insufficient after copper prices rebounded, limiting overall upside room. Therefore, SMM expects the copper wire and cable operating rate next week (May 22-28) to continue rising 0.89 percentage points WoW to 67.77%.