Demand continues to be sluggish, with weekly operating rates continuing to decline [SMM Enamelled Wire Market Weekly Review]

      This week, the operating rate of enamelled wire industry machinery decreased by 0.2 percentage points WoW to 81.9%, while weekly orders increased slightly by 0.51% MoM. The days of finished product inventories for enamelled wire enterprises stood at 9.49 days. The reduction in the operating rate of enamelled wire machinery led to a MoM decline in finished product inventories. Copper prices fell WoW this week, and downstream orders increased slightly, but the overall performance remained poor. According to SMM, orders in the enamelled wire industry continue to be sluggish, with a continuous decline in demand for terminal home appliances. Orders for NEVs and power transformers also show a weakening trend. The persistent sluggishness in demand has significantly increased sales pressure on enterprises. To maintain production, competition for RC among enterprises has intensified, leading to cut-throat competition. SMM has learned that leading enamelled wire enterprises have significantly reduced their RC to cope with short-term sales pressure. Currently, the RC in the enamelled wire industry is approaching rock-bottom prices, continuously compressing enterprises' profit margins. If copper prices remain high, the enamelled wire industry is expected to face even greater challenges in July.