Copper Prices Soared, Operating Rates and Orders Both Declined [SMM Enamelled Wire Market Weekly Review]

The machine operation rate in the enamelled wire industry this week was 88.1%, down 1.1% WoW, and the weekly order volume declined 1.77% WoW. The center of copper prices continued to rise, suppressing the enthusiasm of downstream enterprises for placing orders, leading to a dual decline in the operation rate and order volume of enamelled wire companies. According to SMM, the current copper price has exceeded 80,000 yuan/mt, surpassing the cost tolerance of most downstream enterprises, causing widespread production losses. To reduce losses, downstream enterprises chose to prioritize consuming their own inventory and simultaneously communicated with end-users about delaying deliveries or renegotiating prices, resulting in a temporary decline in demand for enamelled wire. Some enamelled wire companies saw a drop of over 20% in new orders for the week. However, customers who settle at the monthly average price increased their order volumes this week as the average monthly copper price during the settlement period was more than 2,000 yuan/mt cheaper than the current price. But next week, with the change in the monthly average price settlement cycle, order volumes will also decrease. Overall, downstream customers strongly resist high copper prices, currently focusing on consuming their own inventory, which significantly suppresses the market demand for enamelled wire.