Secondary Brass Supply Remains Tight Amid Low Raw Materials

The Shanghai Metals Market (SMM) has reported that the supply of secondary brass remains tight, with raw material prices holding steady at high levels. This has resulted in squeezed processing profit margins for copper billet enterprises.

According to SMM data, the days of raw material inventories at sampled enterprises stood at 3.52 days, a low level that indicates a shortage of raw materials. However, downstream buyers have been hesitant to restock proactively, with just-in-time procurement being their preferred approach.

This has hindered finished product inventory destocking, which has also been impacted by weak demand. The days of finished product inventories at sampled enterprises stood at 5.11 days, indicating a backlog in sales.