Chinese Copper Bar Operating Rates Plummet Amid Raw Material Shortages
Copper bar operating rates in China fell to 44.26% in July, down from June's rate of 46.09%. This decline is attributed to raw material shortages and weak demand, according to data from SMM.
Large enterprises maintained relatively strong production resilience, but at a lower rate than the previous month. Their operating rate was 51.74% in July, compared to 54.57% in June. Medium-sized enterprises saw their operating rate decline to 33.82%, while small enterprises' rate dropped to 22.96%.
The industry's polarization between large and small enterprises persisted, with the latter facing significant pressure due to high-priced raw materials and insufficient end-user orders.
SMM predicts that China's comprehensive copper billet operating rate will pull back further in August, reaching 42.22%. The main factors contributing to this decline are tight raw material supply and off-season demand pressure. Small and medium-sized enterprises will continue to face production challenges due to these conditions.