October brought a rebound in brass rod production and selective demand support, but high copper prices and cautious stockpiling kept inventories low. As the market transitions into November, weaker appliance production schedules point to softer downstream demand, suggesting that brass rod operating performance will likely remain under pressure.
In China, Brass rod saw new impetus in October with the production gradually recovering from the National Day holiday. The rebound in operating activity lifted market sentiment and buoyed up prices by 2.2% by month’s end.
onth, the brass rod industry operated weakly, with enterprise operating rates falling to 41.3%, below pre-holiday levels. The National Day holiday was the key driver, as widespread work stoppages slowed production.
By mid-October, the operating rates of brass rod producers bounced back to 46.82%, up 5.52 percentage points week-on-week, as production gradually recovered after the holiday. However, copper prices have been high and volatile, which kept enterprises cautious in stockpiling and inventories at a low level.
In late October, under the pressure of high prices for copper, brass rod companies continued to take a conservative approach to stocks. Operating rates inched down slightly to 46.63%, down by 0.38% compared with last week, while the stock levels were still very low.
On the demand side, brass rod consumption showed uneven trends in October. Demand from the refrigeration industry, particularly for components such as valves gradually picked up, while traditional sectors like plumbing and sanitary ware remained sluggish with little improvement. Most end-users continued to purchase brass rod only to meet rigid demand, with limited restocking driven by bullish expectations. The automotive sector provided some support, as China’s passenger car retail sales reached 3,322,000 units, up 3% month-on-month. Meanwhile, the construction industry sent mixed signals: overall activity stayed subdued, but civil engineering projects accelerated sharply, boosting business activity and offering incremental demand for brass rod.
Looking ahead into November, downward pressures from demand-side are expected to remain in the brass rod market. Schedules for combined production of air conditioners, refrigerators, and washing machines this month stand at 28.47 million units, down 18% compared with the same period last year. By category, the new production schedules for household air conditioners are 12.76 million units, for refrigerators 7.78 million units, and for washing machines 7.93 million units, down 0.2% YoY. Downstream consumption will be weakened as appliance output declines, so the operating performance of brass rod enterprises is likely to stay depressed.
