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

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.