End-use demand remains sluggish, with both operating rates and new orders declining [SMM Weekly Review of Enamelled Wire Market]

      This week, the operating rate of enamelled wire industry machinery decreased by 0.3 percentage points MoM to 81.6%, and weekly orders also declined slightly by 0.26 percentage points MoM, indicating a dual decline in the industry's machinery operating rate and new orders. On the one hand, the industry has entered the traditional off-season, with end-use demand remaining sluggish, directly leading to poor enamelled wire order performance. Additionally, influenced by mid-year settlement factors, some downstream enterprises have reduced their procurement volumes. The weak demand has further triggered a chain reaction, with downstream cargo pick-up slowing down, causing the days of inventories of finished enamelled wire products in the industry to climb to 9.77 days this week. To effectively control inventory risks, enterprises have reluctantly reduced their machinery operating rates. From the perspective of the end-use market, demand in areas such as home appliances, industrial motors, NEVs, power transformers, and power tools has all declined to varying degrees, with both round and flat wire orders performing poorly. SMM predicts that the operating rate of enamelled wire industry machinery will drop to 80.53% next week. Under the shadow of the off-season, the industry's machinery operating rate may continue to decline.