New orders remain sluggish, with pessimistic demand expectations for June [SMM Enamelled Wire Market Weekly Review]

       This week, the operating rate of enamelled wire industry machinery was 83.7%, down 0.2 percentage points WoW. Weekly orders decreased slightly by 0.39% WoW. The days of finished product inventories for enterprises dropped to 8.21 days, a decrease WoW. Multiple enterprises in the industry indicated that enamelled wire orders have been underperforming recently, with weak downstream stocking intentions before the Dragon Boat Festival and a continuous decline in new orders. Enterprises have proactively controlled finished product inventories and adjusted production rhythms, leading to a sustained decline in the operating rate. In terms of end-use demand, orders in the NEV and power transformer sectors performed well, while demand in the industrial motor and home appliance segments saw a significant pullback. Regarding the Dragon Boat Festival holiday, most enamelled wire enterprises maintained normal production rhythms, but a few enterprises planned to halt production for two days due to weak orders and to adjust inventories. Overall, the enamelled wire industry exhibits distinct off-season characteristics, with a weak market performance. It is expected that there will still be pessimistic expectations for the market in June.