Copper Prices Pull Back to Boost Demand, Weekly Orders Show Significant Growth [SMM Enamelled Wire Market Weekly Review]

       This week, the machine operating rate in the enamelled wire industry rebounded by 0.86 percentage points MoM to 76.33%, while new orders surged by 9.09 percentage points MoM, primarily driven by demand release following the decline in copper prices. According to SMM, as copper prices pulled back to around 85,000 yuan/mt by the end of the week, downstream enterprises significantly increased their restocking enthusiasm, leading to a concentrated release of new orders and a slight rebound in the operating rate. Inventory side, the decline in copper prices effectively accelerated the cargo pick-up pace of downstream enterprises, further optimizing the turnover efficiency of finished product inventories in the industry. Within the week, days of finished product inventories dropped to 9.24 days. End-use demand side, orders from the home appliance sector improved slightly compared to the previous sluggish state, showing a slight increase, while the new energy vehicle and power transformer sectors remained favorable. It should be noted that current copper prices are still at a relatively high level historically, and their inhibitory effect on end-use demand has not been completely eliminated, with the overall market not showing the busy scene typical of the traditional peak season. Overall, the decline in copper prices led to a slight recovery in industry orders for the enamelled wire sector. SMM expects the machine operating rate in the enamelled wire industry to continue rising to 77.07% next week.