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

Published: Sep 14, 2024 09:51
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 to learn 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
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
17 hours ago
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Read More
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan
17 hours ago
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
17 hours ago
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Read More
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.
17 hours ago
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
17 hours ago
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Read More
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."
17 hours ago
SMM Latest Market Survey—Off-season Gloom Envelops the Enamelled Wire Industry [SMM Analysis] - Shanghai Metals Market (SMM)