High Copper Prices Weigh on Demand, Operating Rates Pull Back as Expected [SMM Enamelled Wire Market Weekly Review]

       This week, the operating rate for the enamelled wire industry pulled back 1.13 percentage points to 77.67%. High copper prices significantly suppressed end-use demand, and at the year-end period, enterprises strictly managed finished product inventories, proactively reducing the operating rate amid mediocre order performance. Industry finished product inventory dropped to 8.76 days. Additionally, demand for downstream wheel hub motors remained weak, with some enterprises seeing notable order declines and a clear slowdown in production schedule pace. Demand side, home appliance sector orders continued a slight rebound, and end-user acceptance of high copper prices improved. With market expectations uniformly bullish on future prices, just-in-time procurement volume concentratedly released, driving a 2.52 percentage point increase in new orders WoW. Although persistently high copper prices continued to significantly suppress demand, end-users' bullish expectations on copper prices strengthened and their acceptance of high prices improved, coupled with some end-users still having volume push plans at year-end. Next week's operating rate is expected to remain low but potentially rebound slightly to 77.73%.