Operating Rate and Orders Continue to Decline, Off-Season Market Persists [SMM Enamelled Wire Market Weekly Review]

This week (July 24-30), the operating rate of enamelled wire industry machines slipped 1.4 percentage points WoW to 72.00%, while weekly orders pulled back 1.85% WoW. The industry is in the traditional demand off-season, with weak support from end-user rigid demand. Coupled with copper prices remaining elevated, downstream fear of high prices persisted, leading to insufficient willingness to place orders. Against the backdrop of weakening orders, enterprises proactively tightened their production schedules. This week, days of finished product inventories stood at 10.03 days. Although inventories pulled back WoW, they remained at a relatively high level overall. Overall, the weak off-season and elevated copper prices created a double bearish factor, prompting enterprises to continuously adjust their production pace to avert risks. Driven by the resumption of production at enterprises under maintenance, the industry's machine operating rate is expected to rebound slightly to 72.87% next week, while the market as a whole will likely maintain its off-season pattern.