Weekly operating rate of leading aluminum wire and cable companies remained stable, but purchasing sentiment was relatively cautious [SMM analysis]

This week, the operating rate of leading enterprises in the aluminum wire and cable industry remained stable at 60.6%, without major fluctuations. With the arrival of April, the leading aluminum cable company maintained continuous and stable operation of its production line with strong support from orders from the State Grid. Recently, orders from the State Grid have injected new demand momentum into the aluminum wire and cable industry. Orders from the State Grid in various provinces and cities have gradually been implemented. According to the performance of State Grid orders, the peak period for picking up aluminum wire and cables is concentrated from April to June, and the monthly pick-up volume remains above 150,000 tons. The industry's shipments have gradually increased, driving the industry's operating rate to stabilize and improve. However, in terms of procurement, aluminum wire and cable companies are facing some challenges. The aluminum prices have been hovering at a high level recently, which has narrowed the profit margin of aluminum wire and cable companies' existing orders to a certain extent. Companies are generally cautious about the high aluminum prices, and their procurement strategies have become more conservative, mainly focusing on meeting rigid demand. This market sentiment inevitably has a certain inhibitory effect on the production enthusiasm of enterprises. Nevertheless, under the urgent pressure of delivering orders from the State Grid, aluminum wire and cable companies have to increase their operating rates and speed up the production of finished products to meet delivery requirements. The overall trend of the aluminum wire and cable industry's operating rate being steadily upward has not changed.