Chinese New Year Atmosphere Gradually Rises; Copper Wire and Cable Enterprises Show Significant Decline in Operations [SMM Wire and Cable Market Weekly Review]

       This week (1.10-1.16), the operating rate of SMM copper wire and cable enterprises was 60.94%, down 8.37 percentage points MoM, 11.04 percentage points lower YoY, and 2.37 percentage points below the expected operating rate. New orders for wire and cable enterprises showed minimal growth this week, as workers have gradually started taking leave and returning home, leading to a reduction in production activity. Only a few enterprises were reported to have received orders for previously awarded power-related projects. According to SMM, the holiday duration for wire and cable enterprises during this year's Chinese New Year is 11-16 days, with South China leading the nation in holiday length. Compared with previous years, some enterprises have extended their holiday duration by 1-3 days. Regarding stockpiling, wire and cable enterprises have mostly completed their raw material and finished product stockpiling, but the stockpiling volume this year is lower than in previous years. This is partly due to the limited new orders before the holiday and partly due to the high uncertainty in recent copper price fluctuations, which has affected stockpiling sentiment. Starting next week, from the 20th, wire and cable enterprises will gradually begin their holidays, with most enterprises taking leave around the 25th. SMM expects the operating rate of copper wire and cable enterprises to drop sharply by 22.84 percentage points to 38.1% next week, 4.1 percentage points higher than the same period last year (the week before Chinese New Year).