Copper Cathode Rod Industry Sees Operating Rate Decline Amid High Prices

The copper cathode rod industry has seen its operating rate decline due to high copper prices and weakening demand. In August, the operating rate was 62.64%, a drop of 4.37 percentage points from July and 5.73 percentage points lower than last year's August level.

Large enterprises had an operating rate of 72.34%, medium-sized enterprises at 47.12%, and small enterprises at 59.92%. The high copper prices have suppressed downstream orders, leading some companies to opt for maintenance shutdowns to avoid cost pressure.

The industry-wide operating level continued to pull back, with copper cathode rod output declining slightly. Downstream sectors such as wire and cable and enamelled wire were under pressure due to weak demand, resulting in a contraction in operating rates and orders.

Looking ahead to September, the operating rate is expected to rise 1.05 percentage points MoM to 63.69%, down 6.61 percentage points YoY. Copper prices remain high, and while downstream acceptance is slowly improving, wait-and-see sentiment persists.