en.Wedoany.com Reported - Data released by industry research firm Shanghai Nonferrous Metals (SMM) on June 26, 2026, shows that the operating rate of major Chinese cathode copper rod producers for this week (June 22-26) stood at 68.52%, down 2.13 percentage points week-on-week. On Thursday, June 25, copper prices fell sharply due to macroeconomic expectations and market sentiment. Some producers adopted "active" production cuts to cope with price fluctuations, prompting supplier companies to shift their focus to pricing strategy adjustments and raw material inventory replenishment. According to industry insiders, order volumes doubled after the copper price decline, but product delivery plans are scheduled for next week.
Cathode copper rod is an upstream raw material for copper processing products such as wires, cables, and enameled wires. Its operating rate is a key indicator reflecting the prosperity of the copper processing industry. SMM is an authoritative third-party information service provider in China's nonferrous metals industry, and its weekly operating rate data is widely used as a market reference benchmark. According to SMM statistics, the total production capacity of sample enterprises surveyed this week is approximately 1.5 million tons, covering major copper processing regions nationwide.
According to SMM's survey, the decline in the operating rate of copper rod producers this week was mainly driven by two factors: first, the sharp drop in copper prices intensified wait-and-see sentiment among downstream customers, with some delaying pickups; second, some enterprises took advantage of low copper prices to conduct equipment maintenance or proactively reduce production to optimize finished product inventory structures. In terms of prices, the main SHFE copper contract fell over 3% on June 25, hitting a near two-month low, with spot copper prices following suit to around 72,000 yuan per ton (approximately $9,950 per ton). Affected by this, downstream wire, cable, and enameled wire companies increased their willingness to purchase at low prices, and new orders for copper rod producers roughly doubled compared to the previous week. However, due to production scheduling, delivery of the incremental orders is expected to be gradually executed next week, with actual outbound volumes not yet significantly increasing this week. From the perspective of end demand, orders in the wire, cable, and enameled wire sectors have recovered to normal levels, mainly supported by demand from power infrastructure construction, Vehicle Industry" target="_blank">new energy vehicles, and the home appliance industry. Industry analysts pointed out that the impact of short-term copper price fluctuations on the operating rate of the processing sector is typically lagging and phased. If copper prices stabilize, the operating rate of copper rod producers is expected to rebound next week.
Looking ahead, the recovery pace of the operating rate in the copper rod industry will depend on copper price trends and the release rhythm of end demand. Current copper prices have entered the psychological price range of downstream enterprises, and restocking demand is expected to continue to be released. It is anticipated that the operating rate of copper rod producers will rebound next week. However, attention should be paid to the further impact of macroeconomic policies and global copper inventory changes on copper prices. This fluctuation in operating rates is a normal market adjustment, and the copper processing industry as a whole remains in a state of weak supply-demand balance.
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