SHANGHAI, Aug 7 (SMM) – Chinese manufacturers of enamelled wire operated in lower gears in July as orders from home appliance sector weakened in a slow season and the protracted US-China trade war took a toll.
The latest SMM survey showed that the average run-rate across Chinese enamelled wire producers slid 2.82 percentage points from June to stand at 70.99% in July. SMM surveyed 29 domestic producers, with capacity exceeding 1 million mt.
A slack season for home appliance consumption extended from June to July, which depressed demand for the enamelled wire. Orders from downstream industrial motor sector also decreased in July as producers scaled back production amid trade disputes that weighed on global growth and market demand.
However, demand for enamelled wire received support from the electric bicycle, transformer, and new energy vehicle (NEV) sectors.
Steady growth in e-bike production after the new national standards boosted demand for the enamelled wire. The NEV sector continued to outperform the traditional car industry, with NEV production rising 48.5% year on year in the first half of 2019, according to data from China Association of Automobile Manufacturers (CAAM).
For August, the lingering impact of a slow season and trade uncertainties are expected to keep operating rates across enamelled wire producers lower from July.