Copper Rod Operating Rates Rise Amid High Prices
The operating rate of major domestic refined copper rod manufacturers in the final week of August rose to 62.44%, up 1.24 percentage points month-on-month and down 5.68 percentage points year-on-year, according to SMM analysis.
This increase was driven by structural factors such as order migration, existing backlogs, and resumption after maintenance, rather than organic volume growth driven by end-user demand.
However, downstream consumption remained weak due to high copper prices, with end-users showing growing price aversion. Cable producers reported a 3.08 percentage point year-over-year decrease in operating rates, while enameled wire machine utilization dropped 0.40 percentage points month-on-month.
SMM forecasts the cable operating rate to drop 1.32 percentage points month-on-month to 65.19%, and enameled wire machine utilization to fall to 70.13%. Downstream demand is unlikely to improve in the short term, as high copper prices continue to constrain order continuity.