Enamelled Wire Industry Enters Off-Season, Weekly Operating Rate Gradually Pulls Back [SMM Enamelled Wire Market Weekly Review]

      This week, the operating rate of enamelled wire industry machinery fell by 1.4 percentage points MoM to 82.3%, and weekly orders decreased slightly by 0.26% MoM, showing an overall characteristic of "smooth transition at the beginning of the off-season". Currently, the enamelled wire industry has entered the off-season, with new orders showing a relatively small decline WoW, in line with market expectations. It is worth noting that some enterprises suspended production for two days due to the Dragon Boat Festival holiday, which temporarily dragged down the operating rate. Excluding this factor, the actual decline in the industry's capacity utilisation rate was more moderate. In terms of inventory, due to the decline in downstream demand, enterprises' days of finished product inventories stood at 8.98 days, an increase WoW. However, the current total inventory is still within the normal historical fluctuation range, and there has been no significant inventory buildup pressure. Overall, as the off-season deepens, it is expected that new orders in the enamelled wire industry will remain at a low level. Enterprises will dynamically adjust their production pace based on order volume and inventory levels, and it is expected that the enamelled wire industry's operating rate will gradually drop back slightly.