Year-End Multiple Factors Impact the Operating Rate of Copper Enamelled Wire Industry Machines Continues to Decline [SMM Analysis]

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       This week, SMM surveyed the production and new orders of 15 enamelled wire companies of varying scales in China. Overall, the industry's operating rate was 78.3%, down slightly by 0.17% WoW.

      According to SMM, the decline in the operating rate was mainly due to weakening downstream demand as the year-end approaches. Meanwhile, copper prices rose this week, which also impacted downstream purchasing and stockpiling willingness, with a particularly notable reduction in new orders towards the end of the week. Additionally, with the Chinese New Year approaching, some companies have reduced machine operations as non-local workers return to their hometowns.

      Regarding new orders, most companies remained stable compared to last week; among them, three companies saw a decrease in new orders, while two experienced growth. However, new orders are expected to weaken more significantly next week.

      From the perspective of end-use demand, orders in sectors such as power transformers, home appliances, and NEVs continued to perform well, with no significant changes compared to last week. This positive momentum is expected to persist in these sectors through the end of the year.