Orders and Operating Rates Rebound in Sync, Enamelled Wire Industry Sees Mild Recovery [SMM Enamelled Wire Market Weekly Review]

      This week, the operating rate of enamelled wire machinery rose 0.73 percentage points MoM to 77.93%. Mid-week, copper prices pulled back slightly, effectively stimulating downstream order demand and driving the weekly new orders up 5.94 percentage points. Overall industry activity showed signs of recovery, but has not yet reached the conventional peak season level. Inventory side performed positively; downstream cargo pick-up pace accelerated this week, further improving the turnover efficiency of finished product inventories in the industry. Days of finished product inventories dropped to 8.7 days within the week. Overall, high copper prices remain the core factor restricting full order release, while downstream demand side showed mediocre performance, together resulting in the current underperformance in peak season. However, recent home appliance end-user orders have shown signs of recovery, providing support for the continued recovery of enamelled wire industry orders. SMM expects that the operating rate of enamelled wire machinery will continue its upward trend next week, likely reaching 78.4%.