How Will Industry Orders for Enamelled Wire Perform in December? [SMM Analysis]

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       As 2024 draws to a close, the enamelled wire industry typically sees a push for annual target at year-end. What are the market expectations this year? How did industry orders perform in December? SMM gathered the following insights from multiple enamelled wire companies:

       South China Company A: Stimulated by the national subsidy policy for home appliances, orders for enamelled wire used in home appliances increased significantly. November production was close to full capacity, and current orders on hand are sufficient. All machines are operating at full capacity, and the company has positive expectations for December, anticipating continued full-capacity operation.

       Central China Company B: November orders were slightly better than in October, but December is expected to see a decline, mainly due to year-end funding issues. Downstream procurement remains cautious, and the company is also intentionally controlling financial risks.

       East China Company C: Current machine operating rate exceeds 70%, and orders are relatively stable, basically meeting expectations. The company plans to push for year-end targets in December, and as the industry is in a demand peak season, December production is expected to maintain November levels.

       East China Company D: November orders were still good, but December is expected to see a decline. On one hand, as year-end approaches, demand for two-wheelers and power tools is in the off-season, leading to a decline in demand. On the other hand, around mid-December, the company plans to control order volumes to manage receivables, which will impact order levels.

       South China Company E: Q4 orders have been strong, especially for new energy-related orders, which are abundant. The operating rate in December is expected to remain high.

       South China Company F: Recent orders have been very strong, and shipments are almost overwhelming. Demand from the automotive and home appliance sectors is robust, and the machine operating rate in December is estimated to approach full capacity.

       East China Company G: Recent orders have been decent, with a machine operating rate of 80%. December is considered a peak season for the industry, with recent orders for small home appliances performing well. Additionally, there is an expectation for a year-end push for targets.

       East China Company H: Orders have been poor this year. While demand from the traditional auto parts sector is acceptable, the company cannot compete with others on price and is unable to bid at lower prices. Moreover, the largest downstream automaker has seen poor sales, leading to reduced demand for enamelled wire. As year-end approaches, December is also unlikely to improve.

       East China Company J: Q4 orders were significantly better than in Q3, but the annual target is still difficult to achieve. Copper prices fell in November, releasing some demand, and downstream order volumes increased significantly. Recent orders have been stable without major growth, with optimistic expectations for December to remain flat with November.

      Overall, a few enamelled wire companies are pushing for annual targets in December, but most are producing based on demand. Recent demand for enamelled wire from white goods and small home appliances remains strong, and enamelled wire companies in South China still have abundant orders on hand. Additionally, orders for enamelled wire related to auto parts, power transformers, and new energy are expected to remain positive. Most companies anticipate December orders to sustain November levels. However, as the payment cycle in the enamelled wire industry generally exceeds 30 days, companies are exercising stricter risk control over receivables as year-end approaches. Some companies indicated they would intentionally limit order volumes after mid-December. SMM believes December is a relatively strong season for the enamelled wire industry. Downstream sectors are expected to stockpile and push for targets, and most enamelled wire companies report stable orders. December orders for the enamelled wire industry are expected to remain strong.