The industry's off-season, coupled with rising copper prices, has led to a continuous decline in the operating rate. [SMM Weekly Review of Enamelled Wire Market]

     According to the latest data from SMM, the operating rate of enamelled wire industry machinery this week dropped sharply by 2.07 percentage points MoM to 79.53%, exceeding market expectations. Affected by the rise in copper prices, downstream purchase willingness was severely suppressed, and new orders fell by 0.9 percentage points MoM. In terms of inventory, although some enterprises chose to cut production and control inventory due to mid-year inventory checks, overall demand remained sluggish, and finished product inventories in the industry continued to climb, reaching 9.92 days this week. From the end-use market perspective, the decline in the home appliance and industrial motor sectors remained the most significant. Additionally, July is the peak demand season for NEVs, but the market has not yet fully picked up this week; demand for two-wheelers and power tools remained relatively stable. Overall, the current enamelled wire industry is in an off-season, coupled with high copper prices suppressing demand, resulting in a sluggish overall market performance. SMM expects the operating rate of enamelled wire industry machinery to drop to 79.07% next week.