Copper Prices Surge, Inventory Levels Shift as Producers Slow Output and Downstream Demand Wavers

According to SMM, copper prices surged this week, significantly suppressing new order intake in the copper plate/sheet and strip industry. However, thanks to ample backlog orders accumulated in the earlier period, industry production demonstrated strong resilience. Demand orders from core downstream sectors such as power, new energy, and electronics remained generally stable, supporting full production schedules for most enterprises. As a result, the industry's operating rate continued to fluctuate at highs.

The operating rate of the enamelled wire industry rebounded WoW this week, but the recovery was weaker than expectations. As holiday disruptions faded, machine operating rates rebounded WoW. However, surging copper prices suppressed downstream ordering, dragging on the overall recovery pace, with new orders rising only marginally.

【SMM Copper Cathode Rod News Flash】The operating rate of copper cathode rod producers rebounded 2.93 percentage points WoW to 63.51% this week. Although production gradually recovered after the holiday, persistently rising copper prices dampened downstream purchasing sentiment. New orders for cables and enamelled wire remained weak, and overall end-user demand was sluggish, dragging operating rates below expectations.