Copper Wire and Cable Industry Sees Moderate Recovery Despite Off-Season Challenges

The copper wire and cable industry saw an increase in operating rates this week, despite facing challenges from the traditional off-season. According to SMM's weekly review, the operating rate of copper wire and cable enterprises rose by 3.55 percentage points month-over-month (MoM) to reach 65.8% for the period August 14-August 20.

This recovery was influenced by a low base from the previous week and a temporary boost in downstream cargo pick-up willingness, which was fueled by copper prices retreating from highs. However, bearish sentiment re-emerged, leading to a marginal improvement in overall orders.

On the inventory side, wire and cable enterprises' point-price purchase willingness increased due to the retreat in copper prices. Despite this, procurement remained largely need-based, with raw material inventories up 2.88% MoM. Finished product inventories also edged down by 1.62% MoM.

Looking ahead to next week (August 21-August 27), SMM expects the operating rate of copper wire and cable to continue its upward trend, although at a slower pace. The industry remains in the traditional consumption off-season, with end-use demand remaining weak overall. Even if copper prices edge down, the boost to new orders is limited, and order sustainability is insufficient.