China's Brass Billet Production Slumps Amid High Costs and Low Demand

The operating rate of brass billet producers in China declined for the eighth consecutive week, according to SMM's survey. During the week of August 7-13, the weekly operating rate was down 0.16 percentage point from the previous week and 1.25 percentage points year-over-year at 48.52%. The decline is attributed to off-season market conditions and a lack of drivers for actual downstream orders.

Copper prices continued to fluctuate at highs, while the supply of recycled brass raw materials remained tight, contributing to high raw material costs that will likely squeeze corporate profits and curb production willingness.

SMM expects the weekly operating rate to decline further to 48.46% next week, down 1.37 percentage points year-over-year.