en.Wedoany.com Reported - In the first half of 2026, the recovery of production activities in China's copper rod industry has been sluggish. According to data from industry research institutions, the comprehensive capacity utilization rate of refined copper rod enterprises nationwide in the first quarter of 2026 was 54.78%, down 2% quarter-on-quarter from the fourth quarter of 2025. The recycled copper rod market continues to be mired in structural difficulties, with an operating rate of only 12.79% in April, a year-on-year decrease of 21.1 percentage points.

In the refined copper rod market, total production in the first quarter of 2026 amounted to approximately 2.6 million tons, a decrease of about 210,000 tons from the fourth quarter of 2025, representing a quarter-on-quarter decline of approximately 7%. According to a survey by Mysteel of 63 domestic refined copper rod sample enterprises (with a total capacity of 16.49 million tons), the capacity utilization rate of domestic refined copper rods in May 2026 was 63.52%, down 6.49 percentage points quarter-on-quarter. In the first quarter, processing fees for refined copper rods showed a low-level recovery trend overall, with an average of 450 yuan/ton, down 10% from the average in the fourth quarter of 2025 and down 13% from the average in the first quarter of 2025. In January, processing fees were at extremely low levels due to the strong rise in copper prices; in March, as downstream enterprises resumed production intensively, the processing fee center shifted upward, with some brands reaching 800 yuan/ton during certain periods.

The recovery of the recycled copper rod market has been even more challenging. According to a survey by Mysteel of 77 domestic recycled copper rod sample enterprises (with a total capacity of 8.46 million tons), the capacity utilization rate of domestic recycled copper rods in May 2026 was only 17.76%, down 2.63 percentage points quarter-on-quarter and down 11.17 percentage points year-on-year. The cumulative production of domestic recycled copper rods from January to June 2026 is estimated at 912,300 tons, a year-on-year decrease of 29.30%. Industry analysis points out that the recycled copper rod market is deeply entrenched in structural contradictions caused by industrial policies, with the core constraint being the shortage of compliant invoices resulting from the "reverse invoicing" policy, leading to a persistent scarcity of high-quality tax-included recycled copper raw materials. This fundamental constraint has persisted throughout the first half of the year, profoundly affecting every link in the industrial chain and keeping the operating rate of recycled copper rod enterprises at a low level.

On the consumption side, growth in power grid investment has provided some support for copper rod demand. From January to February 2026, national power grid investment increased by 12.3% year-on-year, with distribution networks and charging pile construction driving demand for copper wires and cables. In the first quarter of 2026, State Grid completed fixed asset investments of nearly 130 billion yuan, up approximately 37% year-on-year. However, as the market gradually enters the traditional off-season, downstream wait-and-see sentiment continues to intensify, and the overall recovery process of the copper rod industry remains slow.

Looking ahead to the second half of the year, the capacity utilization rate of the refined copper rod market is expected to remain around 65%. Whether the recycled copper rod market can escape its predicament still depends on whether the invoice shortage issue can be effectively alleviated. The structural adjustment of China's copper rod industry continues, and a full recovery of production activities will take time.