SHANGHAI, May 11 (SMM)—Operating rates at enamelled wire producers lost 0.33 percentage point on the month, but gained 7.71 percentage points on the year to 83.98% in April, according to an SMM survey 32 producers with total capacity of 1.07 million mt. This was 0.49 percentage point lower than the expected 84.47%. Operating rates stood at 83.96% across big producers, down 0.35 percentage point on the month, 85.28% across medium-scale producers, down 0.27 percentage point, and at 63.04% across small plants, down 1.11 percentage points month on month.
Orders at enamelled wire plants slid as copper prices surged, which led to the lower-than-expected operating rates in April. According to the ChinaIOL, the planned production across major air-conditioner manufacturers stands at 18,000 units in April, an increase of 6.4% month-on-month and 26.4% year-on-year. This kept enamelled wire operating rates at high levels. Orders from electric vehicles were strong. The shortage of automotive chips has not yet affected the enamelled wire sector, but the impact is expected to gradually strengthen in May. Rising copper prices made enamelled wire plants cautious about restocking.
Operating rates at enamelled wire plants are expected to fall by 2.45 percentage points on the month to 81.53% in May. SMM learned that most of the plants received fewer orders in May, and the Labour Day holiday will also affect production.
