Orders Plummet, Inventory Rises! Enamelled Wire Industry Orders Slump in First Week After Holiday {{SMM Enamelled Wire Market Weekly Review}}

      This week, the operating rate of enamelled wire industry machinery reached 84.5%, down 2.1% WoW, with weekly orders declining by 6.8% WoW. Following the post-holiday resumption of work, orders in the enamelled wire industry have seen a significant drop. Enterprises have indicated that the inhibitory effect of tariffs on consumer demand has gradually emerged, manifesting in areas such as end-user home appliances, motors, and power tools. According to feedback from enterprises, new orders for leading manufacturers have generally decreased by 5%-15%, with small and medium-sized enterprises being more severely impacted, and some even experiencing order reductions exceeding 30%. Affected by the reduction in orders, the finished product inventories of enamelled wire enterprises have shown growth. According to SMM, the finished product inventory coefficient of enamelled wire enterprises for the week was 1.473 (the normal value for this indicator is 1), representing a 40.55% increase compared to before the holiday. Finished product inventories at multiple enamelled wire enterprises continue to rise. If orders remain poor next week, these enterprises will implement production cuts. SMM anticipates that the operating rate of enamelled wire industry machinery and the volume of new orders will continue to decline next week.