China Copper Social Inventory Sees Slight Destocking Amid Weak Consumption
Copper social inventory in China saw slight destocking ahead of the National Day holiday, with spot supply tightening due to production suspensions and weak consumption recovery. Operating rates at domestic copper cathode rod enterprises fell notably this week, with raw material inventories at processing plants showing structural divergence from finished product inventories.
The industry's overall National Day holiday duration increased compared with previous years, with pre-holiday market conditions and demand trends reversing several times. Earlier, copper prices fluctuated at highs for an extended period, suppressing downstream purchasing enthusiasm. Near the holiday, copper prices pulled back in the short term, briefly releasing rigid demand and driving a surge in copper rod orders.
The operating rate of major copper cathode rod enterprises in China was recorded at 64.75% last week, down 5.15 percentage points from the previous week. The core reason for the decline in operating rates this week was the disruption from the Mid-Autumn Festival holiday and the production halt on the first day of the National Day holiday.