Chinese Copper Billet Industry Sees Modest Recovery in September

The copper billet industry in China experienced a decline in operating rates in August due to high prices and an off-season. According to SMM data, the comprehensive operating rate of sampled brass billet enterprises was 42.63%, down 1.63 percentage points from July and 1.24 percentage points from last year.

The industry is facing pressure from high raw material costs, with domestic and imported brass prices remaining high throughout August. This has led to a squeeze on processing enterprises' profit margins, causing some companies to passively adjust their production schedules.

On the demand side, high copper prices have kept end-user clients in a wait-and-see sentiment, reluctant to place orders without strong purchasing power. As a result, enterprise finished product inventory destocking was hindered, and the pace of capital recovery slowed down.

Looking ahead to September, SMM expects the industry operating rate to rebound 0.59 percentage points from August to 43.22%, but still down 1.88 percentage points from last year. However, some wait-and-see clients may gradually release rigid demand orders, and downstream enterprises have early stockpiling demand due to the approaching Mid-Autumn Festival holiday.