Six Consecutive Declines in Orders Combined with Holiday Impact, Operating Rate to Drop to 72.08% Next Week [SMM Enamelled Wire Market Weekly Review]

This week (April 24–April 30), the enamelled wire industry operating rate pulled back 1.07 percentage points WoW to 78.47%, with new orders continuing to decline by 2.04 percentage points. End-user air conditioning industry demand entered the off-season earlier than usual, significantly dragging down the enamelled wire industry. Persistently high copper prices also suppressed the release of orders. Combined with the concentrated front-loading of subsequent order demand in March, the enamelled wire industry orders continued to decline under the resonance of multiple factors. Inventory side, as next week is the Labour Day holiday, enamelled wire enterprises plan to reduce machine operating rates. Therefore, most enterprises maintained normal production before the holiday, while declining downstream demand pushed finished product inventories days up to 9.65 days. Overall, the current enamelled wire industry operating rate continued its pullback trend. During the Labour Day holiday, most enterprises will follow past conventions and not halt production, but will conduct equipment maintenance and upkeep based on their own order conditions, reducing overall operating loads. The industry operating rate is expected to further pull back to 72.08% next week.