Enamelled Wire Operating Rate Declined in May

[SMM Copper Express] The operating rate of domestic copper cathode rod producers rose 4.82 percentage points WoW this week but pulled back 9 percentage points YoY. The increase in the operating rate was mainly driven by the concentrated scheduling of existing orders, while new orders were weak. High copper prices suppressed downstream wire and cable procurement. Enamelled wire orders were moderate, but high inventory weighed on subsequent production.

[SMM Brass Billet Flash] According to SMM, supply side, secondary brass supply remains tight and quotations stay high, coupled with copper prices fluctuating at highs, procurement costs of raw materials for brass billet enterprises have risen, raw material stockpiling has become more difficult, and raw material inventories remain at low levels.

[SMM Brass Billet Flash] The fundamentals of tight raw material supply, high costs and weak end-use demand remain unchanged. SMM expects the brass billet industry's operating rate will continue to drop 0.25 percentage points MoM to 51.60%, with the industry's operating rate remaining under pressure in the near term.