Exclusive Survey Revealed! How is the Enamelled Wire Industry Performing in the Traditional Off-Season? [SMM Analysis]

The enamelled wire industry is an important downstream consumer market for copper rods. Currently, it is the off-season for the enamelled wire industry, and recent copper prices have declined. How are industry orders? What are the expectations for consumption in August and September? SMM conducted a survey of some enamelled wire producers, and the specific situation is as follows:

Producer A: It is currently the traditional off-season for the enamelled wire industry. Round wire orders in July decreased MoM, and the outlook for August is also quite pessimistic. However, orders for flat wire have performed well, maintaining growth for six consecutive months.

Producer B: Affected by the traditional off-season, orders began to decline at the end of June. In August, downstream home appliance manufacturers will gradually take high-temperature vacations, leading to a continued decline in demand for enamelled wire.

Producer C: Orders in July exceeded expectations. On one hand, copper prices fell, improving downstream ordering willingness; on the other hand, orders for flat wire related to power transformers were very good. The order outlook for August is expected to decline, mainly due to reduced demand amid poor financial conditions of end-users and poor collection of receivables.

Producer D: Recent orders have been relatively poor. Demand is weak in the traditional off-season, and Japanese customers will take high-temperature vacations in August, leading to a continued decline in overall orders.

Producer E: The decline in copper prices attracted some downstream orders. However, some customers are bearish, expecting prices to fall to 70,000 yuan/mt, resulting in strong wait-and-see sentiment. We have many large customers, so orders are relatively stable, with limited decline. July, August, and September are all traditional off-seasons, and the enamelled wire industry is expected to continue its sluggish trend.

Producer F: Downstream customers are mainly in the home appliance sector, and orders in July and August have declined significantly.

Producer G: The decline in copper prices stimulated downstream ordering sentiment, releasing a small amount of orders. However, due to high temperatures, many workers are on leave, and there are plans to reduce production in the workshops. By industry, demand for two-wheelers, electric tools, and industrial motors is generally modest. Orders for August and September are also expected to continue the off-season trend.

Producer H: Orders for round enamelled wire are modest, but flat wire related to NEVs is performing well.

Producer I: Recent orders are poor, with some orders placed in advance due to the decline in copper prices in July. Orders from Japanese automakers have dropped significantly YoY, and there are plans for a 7-9 day vacation in August.

Producer J: Orders are very stable, with full capacity in recent months, and full capacity expected in the coming months. Downstream is related to power transformers.

Producer K: Orders are declining in the traditional off-season. Weakening demand and high temperatures have led to a 10-day workshop vacation. The outlook for August consumption is not optimistic, with downstream shifting from having single-day weekend to two-day weekend, indicating a decline in demand. The outlook for September is also not optimistic, and if demand remains weak at the end of September, the off-season may extend this year.

Overall, it is currently the off-season for the enamelled wire industry, and market demand is generally sluggish. Although copper prices stabilized after falling, releasing some orders, the quantity is limited. Downstream companies remain bearish on copper prices, with cautious purchasing sentiment. By industry, orders for traditional power transformers and NEVs are performing well, while orders for industrial motors, electric tools, and home appliances are not ideal. Looking ahead to August and September, most producers believe the off-season will continue, holding a pessimistic outlook for enamelled wire orders in the next two months.