Weak Demand and Copper Price Volatility Intertwined, Industry Yet to Show Signs of Recovery [SMM Enamelled Wire Market Weekly Review]

       This week, the operating rate of enamelled wire production equipment edged down 0.06 percentage points MoM to 78.4%, while new orders dropped 0.81 percentage points in sync. According to SMM, copper prices rose above 80,000 yuan/mt this week, which slowed downstream order placement and cargo pick-up. New orders declined notably, with home appliance sector demand remaining weak in the off-season and round wire orders underperforming. The industry showed no signs of recovery yet. However, flat wire orders performed well, particularly in the NEV and power transformer sectors. Inventory-wise, finished product inventories at enamelled wire producers rebounded to 10.15 days, intensifying inventory pressure. Overall, the industry displayed no turnaround signals, with sluggish demand and copper price fluctuations intertwining. Both operating rates and orders continued to contract. SMM expects the operating rate to pull back further to 77.6% next week.