Both Operating Rate and Orders Decline, Initial Signs of Off-Season Market Apparent [SMM Weekly Review of Enamelled Wire Market]

      This week, the operating rate of enamelled wire industry machinery stood at 83.9%, down 0.5 percentage points WoW. Weekly orders fell 2.3% WoW. Multiple enterprises reported sluggish downstream purchase willingness during the week. Despite the potential stimulating effect of tariff policy adjustments on the consumer side, orders that had previously shifted to re-export trade due to tariff fluctuations were difficult to return to the domestic market in the short term, and the policy benefits had not yet been effectively translated into actual order growth. Coupled with the demand overdraft effect caused by the surge in orders in early April and the dual impact of the traditional off-season in the industry in late May, both new orders and orders on hand of enterprises showed a contraction trend, which in turn drove the operating rate of machinery to pull back synchronously. In terms of inventory, the days of inventories of finished products of enamelled wire enterprises remained at a normal level of 8.6 days this week. After the contract rollover, the pace of downstream cargo pick-up accelerated somewhat. Coupled with the proactive reduction of the operating rate of machinery by some enterprises, finished product inventories declined slightly WoW. Overall, the market performance of the enamelled wire industry was weak this week. The contraction of new orders and the decline in the operating rate of machinery further highlighted the characteristics of the industry's off-season. According to SMM's forecast, the operating rate of machinery and new orders in the enamelled wire industry may continue to decline slightly next week.