After a sluggish May in China marked by weak orders, and rising inventories, the Brass rod market braces for further strain amid early off-season pressures. In contrast, Italy saw a temporary rebound, though demand risks loom due to tariffs.

Key takeaways:

• Brass rod prices in China witnessed a decline of 2.8% in May due to fall in new orders and reduced production schedule
• Prices in Italy increased by 1.2% as consumer confidence increased with a rise in demand from the home appliances sector.

In early May, after the Labour Day holiday, the Brass rod market showed weakness with no signs of recovery from late April. Enterprises saw slow new orders and delayed deliveries. Export-focused companies, especially valve manufacturers, faced near-stagnant production due to US tariffs. High copper prices and policy uncertainties also dampened downstream demand, increasing inventory pressure.

Mid-May brought an earlier-than-expected off-season to the brass rod market. While operating rates for brass billet producers saw a minor 0.22% week-over-week rise to 57.4%, this increase was less than anticipated. Orders, especially from small and medium-sized air conditioning companies within the refrigeration industry, significantly shrank, impacting even top producers. Manufacturers are currently prioritizing fulfilling current orders.

By late May, Brass rod producers saw their operating rate dip to 55.03%, a monthly 2.37 percentage point drop signaling an early off-season. New orders, particularly in the connector and new energy sectors, fell sharply—around 15% and 10% year-over-year, respectively. Firms are currently relying on existing backlogs to maintain production.

In the short term, Brass rod producers are expected to face increasing pressure as the Dragon Boat Festival holiday and the June off-season exacerbate market conditions. High raw material costs are eroding profit margins, while a sustained slump in downstream orders is leading to reduced production schedules. Sluggish growth in traditional sectors and fierce internal competition is pushing some companies toward ineffective sales promotions, leaving them with elevated finished product inventories.

In Italy, Brass rod demand witnessed a rebound in May as Italian firms reported stronger growth in new orders. In May, the Italian construction sector experienced a marginal expansion. The commercial sector remained the primary driver of growth, with firms signaling increased output due to stronger order books and better weather conditions.

European consumer sentiment held steady in Q2 2025, even after tariff announcements, suggesting a stable underlying demand that supported brass rod consumption. Notably, Italy's consumer confidence rose in May, with retail and market services showing increased optimism driven by stronger sales and improved business conditions.

Brass rod prices in Italy are projected to decrease in the near future. This downturn is largely due to an expected reduction in downstream demand following the enforcement of tariffs