How Will the Enamelled Wire Industry Orders Perform in December? [SMM Analysis]

As 2024 draws to a close, the enamelled wire industry typically sees a push for annual targets at year-end. What are the market expectations this year? SMM has gathered insights from several enamelled wire companies regarding the performance of industry orders in December:

Company A in South China: Stimulated by the national subsidy policy for home appliances, orders for enamelled wires used in home appliances have increased significantly. November production was near full capacity, and current orders on hand are sufficient. All machines are operating at full capacity, and the company has optimistic expectations for December, anticipating continued full-capacity production.

Company B in Central China: November orders were slightly better than in October, but a decline is expected in December, mainly due to year-end funding issues. Downstream procurement remains cautious, and the company is also intentionally controlling financial risks.

Company C in East China: The current operating rate of machines exceeds 70%, and orders are relatively stable, aligning with expectations. The company plans to push for year-end targets in December, and as the industry is in a demand peak season, December production is expected to maintain November levels.

Company D in East China: November orders were decent, but a decline is anticipated in December. On one hand, as year-end approaches, demand for two-wheelers and power tools is in the off-season, leading to a decrease in demand. On the other hand, around mid-December, the company plans to control volumes and focus on receivables, which will partially impact order volumes.

Company E in South China: Q4 orders have been strong, especially for new energy-related products. The operating rate in December is expected to remain high.

Company F in South China: Recent orders have been excellent, and shipments are almost overwhelming. Demand from the automotive and home appliance sectors is strong, and the operating rate of machines in December is estimated to approach full capacity.

Company G in East China: Recent orders have been satisfactory, with an operating rate of 80%. December is considered a peak season for the industry, with downstream small home appliance orders performing well recently. Additionally, there is an expectation for a year-end push for targets.

Company H in East China: Orders have been poor this year. While demand from the traditional auto parts sector is stable, we cannot compete with others on price and are unable to bid at lower prices. Furthermore, the largest downstream automaker has seen poor sales, leading to reduced demand for enamelled wires. As year-end approaches, December is also unlikely to see any improvement.

Company I in East China: Q4 orders have been significantly better than in Q3, but the annual target is still difficult to achieve. The decline in copper prices in November stimulated some demand release, and downstream orders increased significantly. Recent orders have been stable without major growth, with an optimistic outlook for December to remain flat compared to November.

Overall, a few enamelled wire companies are pushing for year-end targets in December, but most are producing based on demand. Recent demand for enamelled wires from white goods and small home appliances remains strong, and companies in South China still have ample orders on hand. Additionally, orders for enamelled wires used in auto parts, power transformers, and new energy sectors are expected to remain positive. Most companies anticipate December orders to continue at November levels. However, as the enamelled wire industry typically has payment terms exceeding 30 days, companies are exercising stricter control over payment risks as year-end approaches. Some companies have indicated plans to limit order volumes after mid-December. SMM believes that December is a relatively strong season for the enamelled wire industry, with downstream stockpiling and year-end target expectations. Furthermore, most enamelled wire companies report stable orders, and December orders are expected to remain solid.