Operating Rates Rebounded as Expected, but New Orders Showed Divergence [SMM Enamelled Wire Market Weekly Review]

        Supported by relatively strong order intake last week and sufficient production schedules, the operating rate of the enamelled wire industry rose 4.06 percentage points MoM to 85.13% this week (March 6–March 12). Based on enterprise feedback, new orders underperformed expectations this week, with industry orders from traditional end-use sectors such as two-wheelers, auto parts, and motors generally mediocre; affected by downstream dip-buying reluctance, enterprises were relatively cautious in placing orders and less active in procurement when copper prices were above 101,000. However, NEV-related orders improved, while demand from the home appliance sector continued to release, driving new orders up 0.11 percentage points MoM this week. Inventory side, days of finished product inventories at enamelled wire enterprises fell to 8.5 days, returning to the normal range. Overall, although weaker-than-expected new orders caused some enterprises to worry about the peak-season market, current orders on hand remained relatively ample, and together with steady demand from the home appliance sector, the industry's operating rate is expected to continue rebounding next week to 86.33%.