Copper price decline stimulates replenishment orders, with machine startup and order-taking recovering simultaneously [SMM Enamelled Wire Market Weekly Review]

This week (6.19-6.25), the operating rate of enamelled wire industry machines edged up 0.27 percentage points WoW to 76.40%, beating expectations, primarily boosted by a market recovery towards the week's end. Weekly orders taken rose 4.32% WoW. Copper prices pulled back sharply at the end of the week, effectively lifting downstream sentiment for buying on dips. New orders improved markedly at enterprises, while the pace of downstream cargo pick-up accelerated, pulling back finished product inventory days across the industry to 8.59 days. End-use demand showed structural divergence: the home appliance sector remained weak; orders for industrial motors and two-wheelers performed steadily; and new energy and power transformers continued to trend positively, providing some support to the industry. The overall market still fluctuated in line with copper price movements, with limited incremental rigid demand during the traditional off-season. Driven by improved order-taking this week, enterprises' willingness to produce increased. SMM expects the operating rate of enamelled wire industry machines to rebound to 77.47% next week.