Enamelled Wire Industry Resumption Progress Bar: 50.4% Loaded [SMM Analysis]

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       After the Chinese New Year holiday, the enamelled wire industry resumed work and production as planned. SMM conducted a survey on the resumption and new orders status of 15 domestic enamelled wire enterprises of different scales.

       According to SMM, most enamelled wire enterprises resumed work on February 5 (the eighth day of the lunar new year). However, due to the time required to restore production and incomplete staff return, the resumption pace of enamelled wire enterprises this week was relatively slow. As of this Friday, the average machine operating rate of the 15 enamelled wire enterprises recovered to 50.4%, and it is expected to exceed 70% next week.

       Regarding new orders, as the Chinese New Year holiday has just ended, some downstream small and medium-sized enterprises have not yet resumed production, resulting in limited growth in new orders for the enamelled wire industry. Additionally, with the rise in copper prices, downstream procurement has become more cautious. However, driven by demand from the downstream new energy and home appliance industries, related enamelled wire enterprises have shown strong order performance. It is reported that during the Chinese New Year holiday, relevant enamelled wire enterprises worked overtime to expedite the delivery of pending orders, and after the holiday, orders on hand remained relatively sufficient. Some enterprises expressed optimism about first-quarter orders. SMM believes that the enamelled wire industry will mostly return to normal after the Lantern Festival, and next week's order performance may better reflect the market's consumption situation.