The operating rates of copper-zinc alloy billet producers averaged 69.86% in April, down 0.1 percentage point month on month but up 10.83 percentage points year on year, SMM survey showed. Orders in April varied across different producers, but the changes were insignificant. The overall operating rate changed little from March.
The operating rates of copper billet producers increased from 59.03% in 2022, but were still lower than 79.65% in 2019 before the outbreak of the COVID-19. The average operating rates of large, medium-sized and small enterprises stood at 75.22%, 63.27%, and 36.16% respectively. Notes: SMM surveyed 24 producers with a total capacity of 1.19 million mt.
The average operating rate of large enterprises increased slightly from the previous month, thanks to higher output driven by cooperation with state-owned enterprises. Small and medium-sized enterprises generally reported that orders declined in April due to poor demand. Many secondary copper traders raised their quotes as plunging copper prices in April narrowed the price spread between copper cathode and copper scrap. Higher raw material prices drove some copper billet plants to reduce output, thereby lowering the operating rates.
Overall, the performance of the copper billet market in April was in line with expectations in March. After the fading of the "prosperity illusion" caused by the implementation of orders placed before Chinese New Year holiday, orders at most companies have declined.
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