Copper prices surge sharply, exacerbating the off-season drag, and operating rates and order intake continue to pull back [SMM Enamelled Wire Market Weekly]

This week (7.17-7.23), the operating rate of machines in the enamelled wire industry dropped 2.07 percentage points WoW to 73.40%, and weekly order intake pulled back 4.18% WoW. The industry itself was in the traditional off-season for demand, with relatively weak support from end-user rigid demand. This week, copper prices surged sharply, and the rapid rise in raw material costs directly suppressed the downstream procurement pace: downstream fear of high prices intensified, with activities mainly limited to sporadic pick-ups for rigid demand; order placements dropped sharply, directly leading to a significant weakening in order intake this week. Affected by declining orders and a slowdown in shipments, enterprise production schedules were passively contracted. However, the pace of production adjustment lagged behind the demand pullback, and days of finished product inventories rose to 10.17 days, further magnifying the pressure from inventory accumulation. Overall, the off-season weakness combined with the copper price rise formed a double bearish factor, prompting enterprises to continue lowering production plans to manage inventory risks. In addition, next week, another enterprise plans to undergo shutdown maintenance, further dragging down the operating level. SMM expects the operating rate of machines in the enamelled wire industry to pull back to 71.27% next week.