Copper Prices Pull Back, Triggering Concentrated Order Releases; Operating Rates Rise Beyond Expectations [SMM Enamelled Wire Market Weekly Review]

This week (9.11-9.17), the operating rate of enamelled wire industry machines rose 5.2 percentage points WoW to 72.73%, with the operating performance exceeding expectations, mainly driven by the pullback in copper prices. Previously, copper prices stayed high, and downstream clients held strong wait-and-see sentiment with weak purchase willingness. Since last Friday, copper prices have declined, and the rigid demand that had been continuously suppressed was released in a concentrated manner, driving new orders this week to surge 16.67 percentage points MoM. On the inventory side, as downstream orders were placed in a concentrated manner and the pace of cargo pick-up accelerated simultaneously, finished product inventories at enterprises were rapidly destocked, with days of finished product inventories pulling back to 10.12 days. Overall, the correction in copper prices drove a phased recovery in industry demand, and end-use demand showed a marginal recovery trend. Coupled with the approaching Mid-Autumn Festival and National Day holidays, enamelled wire enterprises have plans to stockpile in advance, and production enthusiasm has improved. Next week, the industry machine operating rate will continue to rise to 74.07%.