This week (8.14-8.2), the machine operating rate in the enamelled wire industry rose 2.6 percentage points WoW to 72.27%. During the week, copper prices pulled back from 110,000 yuan/mt to around 107,000 yuan/mt, releasing some pent-up demand that had been suppressed earlier. Downstream purchase willingness improved, driving a 7.51 percentage point WoW increase in order volume for the week. On the inventory side, supported by improved downstream cargo pick-up pace, finished product days of inventories fell to 10.33 days this week, although some enterprises still held a relatively high level of finished product inventories. Overall, the decline in copper prices provided temporary benefits, but copper prices remained relatively high, and combined with the traditional off-season for demand, end-users had not shown a substantial recovery. The industry machine operating rate is expected to pull back slightly to 72.20% next week, and the focus going forward will remain on closely monitoring copper price fluctuations and actual purchase follow-through from end-users.
