China Copper Cathode Rod Production Jumps Ahead of Holidays

The operating rate of major copper cathode rod enterprises in China rebounded this week, driven by pre-holiday stockpiling orders. The rate rose to 69.9% between September 18 and September 24, up 4.08 percentage points from the previous week.

This increase was higher than expected, with a 1.78 percentage point margin above forecast. However, it still fell short of last year's comparable period by 3.88 percentage points. The main factor behind this growth was stockpiling ahead of the holiday, as enterprises sought to complete orders before closing down.

Despite the rise in production, high copper prices and premiums had a dampening effect on downstream purchasing sentiment. This led to a notable pullback in new orders. Wire and cable manufacturers, who typically drive demand during this period, saw their operating rates rebound somewhat, but not as strongly as expected.

The pre-holiday stockpiling cycle also affected inventory levels. Raw material inventories increased by 4.92 percentage points due to replenishment efforts, while finished product stocks rose by 3.15 percentage points as downstream cargo pick-up slowed.