SMM Latest Market Survey—Off-season Gloom Envelops the Enamelled Wire Industry [SMM Analysis]

Published: Sep 14, 2024 09:51 (GMT+8)
Source: SMM
September remains the traditional off-season for the enamelled wire industry.

September remains the traditional off-season for the enamelled wire industry. With the holiday approaching, how have market orders changed? Given the market's focus on the consumption side, SMM recently conducted a market survey on enamelled wire companies. The specific situation is as follows:

Company A: Orders have dropped significantly in the past few days. The rise in copper prices has somewhat suppressed downstream purchases, but the main reason is poor market demand. September orders are not very promising, and there is considerable pressure on both production and sales.

Company B: It is the industry off-season, and orders are generally mediocre. The poor performance of the real estate industry has affected many sectors, significantly impacting the enamelled wire industry. For example, the demand for basic construction items like fire pumps and booster pumps has shrunk dramatically. Many downstream companies have seen their orders halved or even completely disappear this year. Our company's orders from downstream industrial motor customers have also declined significantly, with little hope for future growth.

Company C: Copper prices have fallen, leading downstream buyers to purchase at low prices, but mainly to meet immediate needs, so the increase in orders is not substantial. Recently, with copper prices rising, downstream buyers have adopted a wait-and-see attitude. Pre-Mid-Autumn Festival stocking is far lower than expected, and September orders are not expected to be optimistic.

Company D: We have many large downstream customers, so orders are relatively stable. However, competition is fierce this year, and profits are minimal.

Company E: Recently, with copper prices rising, orders have dropped significantly. Orders from automotive electrical parts are relatively stable, but industrial pumps perform poorly.

Company F: Orders from the small household appliance industry continue to shrink. It is currently the production off-season, and production continues to decline.

Company G: September remains the industry off-season. Even if copper prices fall, the boost to orders is very limited. Downstream demand is poor, and we remain bearish on copper prices. The current operating rate is only around 60%, but we expect orders to improve after the National Day holiday.

Company H: Orders have been relatively stable, with full production in recent months. The demand for flat wires in power transformers remains strong.

Company I: With copper prices rising, orders have dropped significantly. Downstream orders have been insufficient this year, continuously affecting enamelled wire companies. During the Mid-Autumn Festival, some small and medium-sized downstream motor and pump factories will take 1-2 days off. There is no stocking demand downstream, and production scheduling is not active.

Company J: It is still the industry off-season, and orders have not changed much. Orders for household appliances are relatively weak, but there are slight signs of recovery recently.

Company K: Recent orders are okay but have slightly declined overall. The poor economy has led customers to cut costs, significantly reducing stocking volumes. To ensure order volumes, some orders are barely profitable. Processing fees are highly competitive, leading to price cuts, extended payment terms, and fierce competition for orders, resulting in very low profits.

From the survey, it is evident that it is still the off-season for the enamelled wire industry, with demand remaining weak. Most companies are pessimistic about September orders. This week, the rise in copper prices has suppressed downstream purchase willingness. Additionally, weak demand has led to insufficient downstream production enthusiasm. Many small and medium-sized downstream companies will take 1-2 days off during the Mid-Autumn Festival. This week, the enamelled wire industry orders are shrouded in the off-season gloom, performing poorly.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%
9 hours ago
KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%
Read More
KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%
KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%
KGHM and South32 have broken ground on a fourth grinding line at the Sierra Gorda copper-molybdenum mine in Chile's Atacama region. The US$725 million expansion runs for three years from January 2027, with completion by late 2029 and full output in H2 2030. Ore processing capacity rises 26%, from 131,000 tonnes per day to 165,000 tpd. Annual copper output is projected to climb from 165,000 tonnes in 2025 to 195,000 tonnes, with 6,000 tonnes of molybdenum, 58,000 ounces of gold and 1.7 million ounces of silver as by-products. The project creates over 900 direct jobs and is funded from operating cash flow and debt. Unit operating costs are expected to fall about 10%.
9 hours ago
Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks
10 hours ago
Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks
Read More
Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks
Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks
Emerita Resources has provided an update on the Preliminary Feasibility Study (PFS) for its Iberian Belt West polymetallic project in Spain, saying the study is well advanced but remains under final technical review.​ The company said the review process has been expanded to include additional technical and quality-assurance oversight before publication. As a result, Emerita now expects the PFS to be released in the coming weeks rather than within the previously indicated timeframe.​ Iberian Belt West hosts copper, zinc, lead, gold and silver mineralization and is one of Emerita’s principal development-stage assets in Spain. The PFS is expected to provide updated detail on the proposed mine plan, processing configuration, capital requirements, operating costs and project economics.​ Emerita said the additional review work is intended to ensure consistency and completeness across the technical disciplines contributing to the study before it is finalized.​ The company did not announce a revised specific publication date, and no new production, capital or economic figures were disclosed in the latest update.​ The extended review delays the next major technical milestone for Iberian Belt West, but the company continues to indicate that the PFS is nearing completion. For the copper market, the significance of the study will depend on the production profile and project economics ultimately disclosed, particularly the contribution of copper relative to the project’s other payable metals. Attention will therefore remain on the timing of the PFS release and whether the final study materially changes the project’s development outlook.
10 hours ago
Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project
10 hours ago
Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project
Read More
Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project
Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project
Cascadia Minerals has reported additional drill results from its 2026 exploration programme at the Carmacks copper-gold project in Yukon, Canada, with new step-out drilling extending mineralization at Zone 2000S beyond the boundaries of the existing Mineral Resource.​ Drill hole CD-26-058 returned 75.55 metres grading 1.19% copper, 0.97 g/t gold, 10.4 g/t silver and 335 ppm molybdenum, equivalent to 2.18% copper-equivalent. The interval included 48.66 metres grading 1.61% copper, 1.39 g/t gold, 15.1 g/t silver and 475 ppm molybdenum, equivalent to 3.03% CuEq.​ Within the same hole, a higher-grade interval of 14.50 metres returned 2.30% copper, 2.68 g/t gold, 29.5 g/t silver and 1,015 ppm molybdenum, equivalent to 5.08% CuEq.​ A second hole, CD-26-059, intersected 93.99 metres grading 0.96% copper, 0.70 g/t gold, 4.6 g/t silver and 919 ppm molybdenum, equivalent to 1.94% CuEq. This included 63.97 metres at 1.26% copper, 0.96 g/t gold, 6.3 g/t silver and 1,049 ppm molybdenum, equivalent to 2.52% CuEq.​ Cascadia said the latest results continue to expand mineralization at Zone 2000S beyond the limits of the current Mineral Resource and highlight the higher-grade nature of the extension. The reported drill intervals represent drilled thicknesses, with true widths estimated at approximately 60–70%.​ The latest step-out results indicate that copper-gold mineralization at Zone 2000S extends beyond the boundaries of the current Carmacks Mineral Resource. The broad intervals and higher-grade internal zones could support future resource expansion if additional drilling confirms continuity. However, the new intersections have not yet been incorporated into an updated Mineral Resource Estimate, meaning their ultimate impact on project scale and mine planning remains to be determined.
10 hours ago