Copper Wire prices in China saw an upward trend in January, driven by seasonal factors and supply constraints. Market participants remained focused on price movements, inventory adjustments, and future demand expectations amid evolving industry dynamics.

In January, Copper Wire prices in China increased by 1.6% as market dynamics evolved. Although the operating rate of Copper Wire and cable enterprises declined slightly week-over-week at the start of the month, it remained marginally higher than expected, reflecting typical seasonal trends.

Raw material inventories for Copper Wire producers saw a month-over-month dip of 2.57%, reaching 20,870 metric tons in the early part of January. Finished product inventories also saw a decrease, falling by 2.92% to 16,630 metric tons in the same period. These inventory adjustments are typical for the time of year, as enterprises prepare for the Chinese New Year holiday period, leading to reduced production and logistical setbacks.

Prior to the Chinese New Year, Copper Wire prices edged upward as worker leave and logistical disruptions affected production. The holiday period, spanning 11 to 16 days with South China taking the lead, further influenced market activity. Pre-Chinese New Year demand prompted some companies to rapidly expedite shipments to meet holiday deadlines, sparking a surge in activity. Several enterprises received significant orders for power generation equipment, adequately supporting immediate production needs.

During this period, tight copper mine supply persisted and even intensified. The TC (treatment charge) index for imported copper concentrate turned negative, signaling that smelting enterprises now incur additional fees for concentrate. This development has significantly impacted smelting profits and constrained crude copper production from mineral resources. Moreover, overall market stability has also come under pressure.

By month-end, most Copper Wire enterprises concentrated on replenishing routine inventories even as downstream demand remained subdued. Raw material inventories for Copper Wire fell by 1,242 metric tons, reaching 42,350 metric tons in January. Optimism for orders from State Grid persisted strongly, although outlooks on new energy power generation—particularly photovoltaic orders—were mixed. Some customers expect a surge in orders in 2025, the final year of the 14th Five-Year Plan, driven by an anticipated strong growth push.

While power grid orders are anticipated to remain stable, uncertainty surrounds new energy power generation orders. Post-holiday, downstream factories have ramped up Copper Wire production, increasing operating rates. Strong domestic policy signals and close market monitoring of key sectors like real estate and new energy are driving demand. However, the tight supply situation in the mining sector, which is unlikely to ease soon, is expected to support the upward trend in Copper Wire prices.