Since early April, the developments in China-US tariff policies have continued to attract industry attention. Against this backdrop, the impact on enamelled wire industry orders has become a focal point within the industry. As the traditional off-season for the enamelled wire industry approaches in late May, the market is paying closer attention to consumption expectations for May. The release of the joint China-US statement on May 12 undoubtedly introduced new variables to the market. Will the order landscape in the enamelled wire industry undergo new transformations as a result? Focusing on these market hot topics and industry concerns, the SMM Copper Team conducted an inquiry into the order status of some enamelled wire enterprises. The specifics are as follows:
Enterprise A: The total order volume of the enterprise in April was actually relatively high, but this was due to the growth in orders following the significant drop in copper prices at the beginning of the month. After mid-April, new orders gradually decreased, and there was a sharp decline in orders in the first week after the Labour Day holiday. Five machines have already been shut down. The reduction in new orders has also led to a decrease in the machine operation rate. This is related to the decline in demand caused by the increase in tariffs, and the outlook for May is not optimistic. However, after the latest adjustment to the tariff policy, it is beneficial for consumption. Although this has not yet been reflected in current orders, it is expected to improve.
Enterprise B: Previously, some orders from air-conditioning enterprises destined for the US were cancelled. Starting from the end of April, the demand for enamelled wire also declined. With the recent readjustment of tariff policies, it is generally beneficial for subsequent consumption. However, orders that were previously transferred to Southeast Asia cannot be brought back in the short term. Therefore, no significant changes in consumption have been felt recently.
Enterprise C: There was a noticeable decline in orders at the end of last month, and recent orders have also been poor. Downstream demand is relatively weak, and copper prices are relatively high. The tariff policy has just been introduced, and no increase in orders has been felt yet. We will have to see how things unfold, and the outlook does not seem optimistic.
Enterprise D: Currently, the machine operation rate is still relatively normal. After the adjustment of the tariff policy, some downstream enterprises have indicated that orders from US customers that were previously suspended are now being produced normally. However, delivery dates have not yet been set, and in the short term, this has not yet been transmitted to the enamelled wire sector.
Enterprise E: Recent orders have declined. Downstream enterprises are sensitive to both copper prices and the beginning of the month. Currently, finished product inventories are slightly high, and no increase in orders has been felt following the tariff adjustment.
Enterprise F: Order performance has been poor since the Labour Day holiday, and there has been no recent growth. The impact of tariffs is not immediate, and there has been no news of a rush to export. Downstream cargo pick-up is also not very active.
Enterprise G: Orders have weakened since late April, and the outlook for May is also relatively pessimistic. Recently, the positive stimulus effect of tariff issues on consumption has not yet been reflected. However, orders have improved somewhat compared to the period immediately after the holiday.
Enterprise H: The machine operation rate was reduced after the Labour Day holiday and is currently maintained at around 80%. Order volume has decreased by about 30% compared to normal levels, and finished product inventories have increased. There are relatively few downstream enterprises that directly export, and the stimulus effect of tariffs on end-use consumption is not expected to be felt until at least one month later.
In summary, despite the positive signals released by the adjustment of tariff policies, feedback from enamelled wire enterprises indicates that the actual boost to orders from the current policies has not yet formed a widespread effect. Most enterprises report a lag in the transmission of orders. Coupled with the expectation of high copper prices and the off-season for consumption, the industry still faces significant uncertainties in May. However, it is worth noting that some enterprises have already detected signs of "thawing" in downstream terminals. Although this has not yet been transmitted to the enamelled wire sector in the short term, it may inject recovery momentum into the subsequent off-season for consumption.
