Production Slowed Down as Holiday Approached, Copper Wire and Cable Operating Rates Continued to Pull Back [SMM Wire and Cable Market Weekly Review]

This week (April 24–April 30), SMM copper wire and cable enterprise operating rate was recorded at 65.9%, down 1.09 percentage points WoW. Copper prices hovered at highs this week, compounded by earlier concentrated procurement having front-loaded part of subsequent demand, and wire and cable industry orders continued their weak trend with operating rates declining further. End-use demand showed divergence: power sector orders remained subdued, mainly dragged by earlier demand release; while new energy and construction sector orders were relatively stable. Inventory side, despite the approaching Labour Day holiday, enterprises remained cautious in stockpiling sentiment due to elevated copper prices, with raw material inventory edging up 2.58% WoW; on finished product inventories, some wire and cable enterprises suspended quotations during the Labour Day holiday, and some end-users cautiously picked up goods in advance, driving finished product inventories down 2.42% WoW. Looking ahead, the wire and cable industry operating rate is expected to continue to pull back next week. Most enterprises have relatively short Labour Day holiday periods, with some choosing production cuts or continued production. Therefore, SMM expects next week (May 1–May 7) copper wire and cable operating rate to continue declining 3.12 percentage points WoW to 62.78%.