High Copper Prices Suppress Orders, Operating Rate Rebounds Limited [SMM Enamelled Wire Market Weekly Review]

       The impact of the National Day holiday was largely eliminated this week, with the operating rate in the enamelled wire industry rebounding by 3.87 percentage points to 75.2%. In terms of order intake, new orders increased by 6.96 percentage points but had not yet fully recovered to pre-holiday levels. According to SMM, high copper prices continued to suppress end-use demand, leading to persistently weak new orders. Performance varied across segments: driven by NEVs, orders for flat wires remained favorable; orders for round wires saw relatively small changes, and although orders from downstream home appliance customers increased, the growth was limited, with overall performance falling short of the same period last year. On the inventory side, enamelled wire enterprises adjusted their production pace to reduce finished product inventories in order to control risks, and the days of inventories for finished products have now dropped to 9.84 days. Overall, constrained by high copper prices, the enamelled wire industry has not yet entered the peak season cycle, and the industry's equipment operating rate is expected to rise slightly to 75.87% next week.