Holiday Disruptions Drove Operating Rates to Pull Back as Expected [SMM Enamelled Wire Market Weekly Review]

Affected by the Labour Day holiday disruption, the enamelled wire industry operating rate this week (5.1-5.7) pulled back sharply by 6 percentage points WoW to 72.47%; new orders weakened in tandem, declining by 4.68 percentage points. Specifically, during the holiday, most enamelled wire enterprises cut production and reduced loads based on orders, leading to a notable decline in operating rates. After the holiday, new order intake showed mediocre performance, end-user purchase pace slowed down, and finished product inventories in the industry further accumulated to 10.34 days. Overall, under the combined impact of multiple bearish factors including declining end-user home appliance demand, prior concentrated orders having front-loaded subsequent procurement demand, and copper prices under pressure at high levels, enamelled wire industry orders and operating rates continued their contraction trend. SMM expects the enamelled wire industry equipment operating rate to be 77.93% next week.