Copper Wire and Cable Industry Faces Pressure from Off-Season Demand and High Copper Prices

The copper wire and cable industry in China faced significant pressure in July due to off-season demand and high copper prices. The operating rate of the industry dropped to 69.82%, down 2.4 percentage points from June and 1.79 percentage points from last year. Large enterprises maintained a relatively high operating rate of 75.13%, while medium- and small-sized enterprises saw significant declines in their operating rates.

Copper prices showed volatile fluctuations throughout the month, affecting the production and operation of wire and cable enterprises. At the beginning of July, copper prices corrected, stimulating downstream industries to release restocking orders. However, prices then rose to high levels, suppressing enthusiasm for procurement and order signing. Power grid orders were limited in size but provided some support for the industry's operating rate.

The raw material inventory ratio of the copper wire and cable industry dropped 0.45 percentage points from June to 22.54%, while the finished product inventory/output ratio increased by 1.23 percentage points to 18.98%. The high copper prices and elevated spot premiums led to cautious raw material procurement, causing a buildup in finished products.

The operating rate is expected to decline further in August, with a predicted drop of 1.17 percentage points from July to 68.64%.