This week (6.12-6.18), the enamelled wire industry’s machine operating rate pulled back 1.20 percentage points WoW to 76.13%, and weekly order intake slipped 1.25% WoW. Orders diverged during the week: early in the week, copper prices were low, downstream restocking willingness was strong, and order-taking improved; within the week, the center of copper prices rose, fueling a wait-and-see sentiment for procurement, and orders dropped noticeably toward the weekend. Overall, the industry’s demand was clearly constrained by copper price fluctuations. Some enterprises proactively scaled back production schedules to mitigate inventory risk, and coupled with a faster pace of downstream cargo pick-up in the prior period, finished product days of inventories pulled back to 8.91 days this week. On the end-use demand side, the new energy segment was notably strong, industrial motor demand remained steady, and the home appliance sector continued its off-season, with the industry’s overall seasonal weakening trend clearly defined. With the Dragon Boat Festival holiday approaching, most enterprises maintained normal production with moderate stockpiling; only a few individual enterprises planned to halt production for two days. SMM expects that next week the enamelled wire industry’s machine operating rate will pull back to 75.07%.
