Copper Cathode Rod Production Takes a Hit from High Prices and Off-Season Demand
Copper cathode rod operating rates have fallen under pressure due to high copper prices and an off-season in demand. In July, the operating rate of copper cathode rod enterprises stood at 67.01%, down 1.7 percentage points from the previous month but up 0.5 percentage points year-over-year.
The persistently high premium on spot copper cathode has compounded the issue, suppressing purchase willingness among downstream end-users and causing new orders for copper cathode rod enterprises to weaken. Many plants voluntarily arranged maintenance and production cuts in response.
Wire and cable and enamelled wire industries have also been impacted by high copper prices, with enterprises becoming more cautious in stockpiling raw materials and controlling inventory. Industry orders have contracted as a result, leading to a seasonal pullback in demand.
The operating rate of copper cathode rod enterprises is expected to decline further in August, reaching 64.75% according to forecasts.