China’s Copper Cathode Rod Output Rises in July, Potential Demand Slowdown Looms

China's copper cathode rod output increased significantly in July, reaching 851,000 metric tonnes, according to data released by the Shanghai Metals Market (SMM) on Wednesday. This marks an increase of 47,900 metric tonnes from June, with the industry operating rate rising to 65.1%, up 2.6 percentage points month-over-month and 1.3 percentage points year-over-year.

The rise in output and operating rates followed a drop in copper prices below 75,000 yuan per metric tonne in July, which helped release backlogged orders.

Looking ahead, SMM forecasts that output in August could further increase to 885,400 metric tonnes, with operating rates expected to climb another 2.6 percentage points month-over-month. However, a potential slowdown in demand may impact production levels in the near future.

Meanwhile, Beijing is expected to focus on boosting consumption in the second half of the year. Advisors and economists have suggested that the government could introduce consumer coupons or other subsidy measures targeted at lower-income households to stimulate spending.