SMM

       This week, the operating rate of enamelled wire industry machinery fell by 0.2 percentage points MoM to 78.4%, with new orders declining by 3.18 percentage points in tandem. Currently, the characteristics of the traditional off-season are pronounced, with no growth in demand from the home appliance sector, and orders for round enamelled wire remaining sluggish. Additionally, fluctuations in copper prices have further suppressed demand. According to SMM, copper prices rose by over 79,000 yuan/mt this week, leading to a sharp drop in new orders and a wait-and-see attitude among downstream players. On the inventory side, finished product inventories of enamelled wire enterprises pulled back to 9.99 days this week, with pressure easing slightly but still remaining high. Overall, amid the off-season cycle, weak demand and copper price disruptions are intertwined, with the industry's operating rate and orders continuing to contract. SMM forecasts that the operating rate of enamelled wire industry machinery will continue to pull back to 77.8% next week.