Following the Chinese New Year holiday, the domestic wire and cable industry has gradually resumed production in an orderly manner, with the overall pace of work resumption largely aligning with expectations. The specific details are as follows:
The industry collectively initiated production resumptions predominantly on the eighth and ninth days of the first lunar month. Only a few enterprises adjusted their schedules: some companies in southern China started their holidays earlier and extended the break slightly, while others resumed operations ahead of schedule due to pressure from pre-holiday order deliveries. Although enterprises have progressively returned to work, the production pace has not yet fully normalized due to the delayed recovery of downstream end-users. Current production is primarily driven by pre-holiday backlog orders, with new order releases progressing slowly. Companies generally anticipate that orders will gradually increase after the Lantern Festival, as downstream end-users fully resume operations.
Downstream orders show significant divergence: the power sector demonstrates strong performance, with the State Grid Corporation of China continuously placing orders before and after the holiday, resulting in favorable production schedules. In contrast, engineering-related orders remain weak. Affected by the delayed resumption of end-user projects and the drag from the real estate sector, new order intake after the holiday has been sluggish, while pre-holiday orders were weaker YoY. Orders in other sectors are relatively balanced and are in a phase of steady recovery.
In terms of raw material procurement, enterprises have generally adopted a cautious approach in the initial phase of resuming operations. Most have not yet engaged in large-scale concentrated procurement, with only some companies conducting advance stockpiling of raw materials to prepare for subsequent normal production.
Overall, the wire and cable industry is currently in a transitional phase characterized by "resumed operations without reaching full production." The operating rate is expected to rebound to normal levels after the Lantern Festival. In the short term, orders from the power sector will continue to support the industry, while engineering-related orders are likely to improve as end-user projects resume. The overall recovery trend of the industry remains clear.
