Operating rate and orders both decline, inventory pressure rises [SMM Weekly Review of Enamelled Wire Market]

      According to SMM data, this week, the operating rate of enamelled wire industry machinery decreased by 2.73 percentage points MoM to 78.07%, with new orders also declining by 3.12 percentage points, both exceeding expectations. On the inventory front, weak demand pushed up finished product inventories. This week, the enamelled wire industry saw days of finished product inventories climb to 10.11 days. According to SMM, affected by the rising copper prices, enamelled wire sales encountered obstacles this week, with downstream cargo pick-up slowing down, leading to a rebound in finished product inventories. Some enterprises have already reduced production to the minimum load. Overall, the rising copper prices this week suppressed downstream purchase willingness. Coupled with weak demand during the off-season, the operating rate of machinery and new orders both saw significant MoM declines. SMM expects that the operating rate of enamelled wire industry machinery will continue to pull back to 77.67% next week.