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(May Copper Wire Business Chart)
The curtain call for copper companies in the peak season fell slightly
In order to gain insight into the production and operational status of copper wire companies in May, a survey was conducted among 28 domestic copper wire enterprises. Among these, 8 are large-scale companies with an annual output exceeding 10,000 tons, representing 28.57% of the total. Another 13 are medium-sized enterprises with annual outputs ranging between 1,000 and 10,000 tons, accounting for 46.43% of the surveyed companies. The remaining 7 are small-scale enterprises, with annual outputs below 1,000 tons, making up 25% of the sample.
As shown in the chart below:
Regarding orders, 8 small enterprises had a monthly output of less than 100 tons, with an average operating rate of 70.94%. 14 medium-sized enterprises produced between 100 and 1,000 tons per month, achieving an average operating rate of 67.07%. Six large enterprises, producing more than 1,000 tons monthly, had an average capacity utilization rate of 89.67%. Overall, the average operating rate for copper companies in May was 71.41%, down from 74.06% in April—a decrease of 3.7%.
One company representative noted, “This year’s copper market is not as strong as previous years. Large enterprises can still manage, but smaller ones are struggling and considering switching industries.â€
Another chart shows the following:
In terms of inventory, 3 companies reported inventories exceeding 1,000 tons. These large enterprises typically maintain larger stock levels due to their scale. 15 companies have inventory below 1,000 tons, keeping it at a level sufficient for emergency needs. Meanwhile, 10 companies have zero inventory, adhering to a strategy of purchasing only when needed to minimize financial risk.
Overall, given the weak global supply situation, sluggish demand, and tight liquidity in the market, copper prices are unlikely to rebound in the near term. With the traditional peak season drawing to a close and the off-season deepening, demand is expected to decline further. Frequent price fluctuations have left many companies concerned. This year's momentum has been weaker compared to previous years, with continued weak copper consumption and poor downstream order fulfillment. Even if orders remain stable, profit margins are nearly non-existent.
Most traders remain pessimistic about the short-term copper market and are looking forward to a potential new peak season in August or September. Based on current trends, we expect the copper market to remain weak in the short term, which may lead to reduced enthusiasm among downstream operators and a challenging environment for order fulfillment.