Copper Cathode Rod Operating Rates Fall Amid High Copper Prices
Copper cathode rod operating rates fell to 67.01% in July, down 1.7 percentage points from June but up 0.5 percentage points year-over-year, according to Shanghai Metals Market.
The decline was due to high copper prices and weak downstream demand during the traditional off-season, leading many enterprises to voluntarily cut production and maintain their facilities.
Copper prices continued to rise in July, with a persistently high premium on spot copper cathode. This suppressed purchase willingness among downstream end-users, causing new orders for copper cathode rod enterprises to weaken further.
The two major consumption areas of wire and cable and enamelled wire also felt the impact of high copper prices, with industry orders contracting in tandem and overall demand exhibiting a clear seasonal pullback.