Enamelled Wire Operating Rate Increased Both YoY and MoM in April, with Pessimistic Sentiment Looming in May Amid Tariff Concerns: SMM Analysis

》Check SMM copper quotes, data, and market analysis

》Click to view the historical price trend of SMM spot copper

      According to SMM, the composite operating rate of the enamelled wire industry in April was 76.79%, up 2.42 percentage points MoM and 6.51 percentage points YoY.Among them, the operating rate of large enterprises was 80.37%, that of medium-sized enterprises was 70.14%, and that of small enterprises was 74.29%.

        After the Qingming Festival, copper prices fell sharply, and downstream customers took advantage of the low prices to restock in large quantities, leading to a surge in orders. Orders during that week surged to more than 4-5 times the usual level, with the enamelled wire industry showing outstanding order performance in the first half of April. However, in the latter half of the month, as copper prices rebounded and stabilized, order volumes returned to normal levels. In addition, the impact of tariffs was also expanding, with demand for enamelled wire weakening in downstream industrial motors and end-user industries such as home appliances and power tools. Despite the gradual decline in order volumes after mid-month, enterprises maintained full production schedules and efficient machine operation rates, thanks to the sufficient order reserves accumulated in the first half of the month. The industry's operating rate increased more than expected.

       In April, the raw material inventory/output ratio of enamelled wire enterprises was 11.38%, down 0.07 percentage point MoM, and the finished product inventory/output ratio was 30.20%, down 0.09 percentage point MoM.In April, both the raw material and finished product inventories of enamelled wire enterprises were at normal levels.

      It is expected that the operating rate of the enamelled wire industry in May will be 69.81%, down 6.98 percentage points MoM and up 0.77 percentage point YoY.

       Entering May, orders in the enamelled wire industry showed a downward trend. According to SMM, the inhibitory effect of the current tariff policy on consumer demand is gradually being released. In the first week after the Labour Day holiday, new orders in the industry plummeted, with new orders at leading large manufacturers generally falling by 5%-15% compared to the previous period, while small and medium-sized enterprises were hit even harder, with some experiencing order declines of over 30%.SMM predicts that, given that the enamelled wire industry is set to enter the traditional off-season in the latter half of May, coupled with the ongoing tariff dispute, the industry's off-season may arrive earlier under the dual pressure. The overall order situation for the enamelled wire industry in May is not optimistic, and market expectations are relatively pessimistic.