The operating rate of enamelled wire reached peak season levels in March. What are the prospects for April?

According to SMM, the comprehensive operating rate of the enamelled wire industry in March was 74.37%, up 18.38 percentage points MoM, down 0.04 percentage points YoY. Among them, the operating rate of large enterprises was 77%, that of medium-sized enterprises was 70.71%, and that of small enterprises was 68.54%.

March is the traditional peak season for the enamelled wire industry, with the operating rate reaching peak levels. From the perspective of end-use demand, the home appliance and automotive parts sectors remain the core drivers boosting the operating rate. Meanwhile, orders in sectors such as transformers, industrial motors, and power tools also showed impressive performance, with many related enamelled wire companies reporting strong order performance. However, due to a significant increase in copper prices in mid-March, the sharp rise in production costs left downstream companies facing losses, forcing them to cut procurement volumes, which directly impacted new orders and dragged down the operating rate temporarily.

In March, the raw material inventory/output ratio of enamelled wire companies was 11.45%, down 3.39 percentage points MoM, while the finished product inventory/output ratio was 30.11%, down 9 percentage points MoM. At the beginning of April, copper prices unexpectedly plummeted, leading to active cargo pick-up by downstream companies and a significant decline in finished product inventories. According to SMM, both raw material and finished product inventories of enamelled wire companies are currently at normal levels.

The operating rate of the enamelled wire industry in April is expected to be 73.45%, down 0.92 percentage points MoM but up 3.17 percentage points YoY.

Entering April, the enamelled wire industry remains in its peak season cycle. Based on early-month observations, enamelled wire companies have shown a clear divergence in their expectations for this month’s orders. Some customers hold an optimistic view: April’s status as a demand peak season remains unchanged, and the recent sharp decline in copper prices has quickly released downstream demand, with some companies already taking orders through mid-month. Others are more cautious: although the current drop in copper prices has indeed stimulated some demand, the impact of tariff policies cannot be underestimated and is expected to exert significant pressure on the export market, thereby strongly impacting the overall demand for enamelled wire. SMM analysis suggests that the operating rate of the enamelled wire industry in April is likely to remain at normal levels. However, it is crucial to remain highly vigilant about the subsequent impact of tariffs on the export of end-use products, which is expected to gradually manifest after mid-April and may introduce some uncertainties to the enamelled wire industry.