September operating rate fell short of expectations, with the strength of the October "peak season" yet to be tested

According to an SMM survey, the comprehensive operating rate of the enamelled wire industry in September 2026 was 67.42%, down 0.53 percentage points MoM and down 0.7 percentage points YoY. Among them, the operating rate of large enterprises was 70.96%, medium-sized enterprises 57.42%, and small enterprises 66.91%, with overall industry operating performance falling short of market expectations.

In September, the enamelled wire industry remained in its off-season cycle, with persistently weak demand from the home appliance sector significantly dragging down orders. Copper price fluctuations had a notable dampening effect on downstream demand: during upward phases of copper prices, downstream procurement tended to be cautious and demand weakened; when copper prices pulled back, orders only saw phased recovery, highlighting the strong linkage between order release and copper price movements. Meanwhile, high premiums on spot copper cathode at month-end, coupled with tight supply of copper rod in South China, suppressed enterprises' willingness to produce. Combined with insufficient downstream stockpiling enthusiasm ahead of the holiday, multiple pressures intertwined, leaving overall industry operations weak.

According to SMM, with copper prices currently elevated, enterprises have mostly adopted proactive inventory tightening strategies, reducing inventory holding costs and potential risks by optimizing raw material procurement pace and accelerating finished product destocking. From the data, finished product inventory days for enamelled wire enterprises in September stood at 11.74 days, down 0.35 days MoM, with overall inventory levels consistent with current performance.

SMM expects the comprehensive operating rate of the enamelled wire industry to pull back to 66.17% in October, down 1.25 percentage points MoM but up 1.7 percentage points YoY. During the National Day holiday, some enamelled wire enterprises experienced shutdowns and production cuts, directly dragging down the industry's overall operating rate. From the demand side, current demand for enamelled wire from power transformer and new energy-related end-user downstream sectors remains relatively stable, but expectations for a recovery in end-user home appliance demand are weak, and high copper prices are significantly suppressing orders. Enterprises remain cautious about order growth expectations, and the enamelled wire industry is expected to see a "peak season without peak demand" scenario in October.