Orders showed mediocre performance, tariff benefits yet to be seen [SMM Weekly Review of Enamelled Wire Market]

      This week, the operating rate of enamelled wire industry machinery reached 84.4%, down 0.1% WoW. The weekly orders increased by 2.09% WoW, and the days of finished product inventories stood at 8.64 days. The operating rate of enamelled wire industry machinery changed relatively small WoW. Some enterprises indicated that new orders improved slightly compared to last week. However, most enterprises stated that copper prices remained high and the price spread between futures contracts was large, resulting in less active downstream ordering and cargo pick-up. Finished product inventories increased WoW. In terms of tariffs, although the adjustment of tariff policies has sent positive signals, according to feedback from enamelled wire enterprises, there is a lag in the transmission of terminal orders. Currently, they have not yet felt the boosting effect of tariff adjustments on consumption. Additionally, some enterprises revealed that their downstream US customer orders, which had been suspended earlier, have now resumed normal production. Although it is difficult to transmit this to the enamelled wire sector in the short term, the long-term trend looks positive.