High Copper Prices Continue to Suppress Purchase Willingness, Order Taking and Operating Rates Continue to Drift Lower [SMM Enamelled Wire Market Weekly Review]

This week (8.07-8.13), the machine operating rate in the enamelled wire industry fell 0.67 percentage points WoW to 69.67%, while weekly order intake pulled back 1.88% WoW. The industry remained in the traditional demand off-season, with weak support from end-user rigid demand. This week, copper prices stayed high overall. Downstream users' fear of high prices and wait-and-see sentiment persisted, and procurement and stockpiling willingness remained subdued, directly leading to weak order performance. As orders continued to weaken, finished product inventory days in the industry rose to 10.62 days, further increasing inventory pressure. Overall, the dual drags of the off-season market and high copper prices continued, and enterprises kept curtailing production to avoid inventory and cost risks. SMM expects the machine operating rate in the enamelled wire industry to pull back to 69.07% next week.