Brass Billet Operating Rates Plummet Amid Weak Demand and Typhoon Disruptions

The SMM Brass Billet Market Weekly Review shows that despite copper prices pulling back, demand recovery remained weak. Operating rates for sample enterprises dropped to 48.55%, down 0.19 percentage points month-over-month and 0.96 percentage points year-over-year. Temporary production suspensions at some small plants due to the typhoon also contributed to the decline.

Raw material supplies of secondary brass remained tight, with prices staying high and squeezing processing margins. The days of raw material inventories for sample enterprises were 3.56 days, down 0.05 days from last month, remaining low.

Downstream restocking willingness was weak, with limited rigid-demand orders, and destocking of finished product inventories was hindered. Finished product inventories for sample enterprises increased to 5.04 days, up 0.08 days from last month, shifting from destocking to a slight build.