Chinese Wire and Cable Enterprises Prepare for Short Production Stoppage During National Day Holiday

The National Day holiday in China is just around the corner, and many wire and cable enterprises have finalized their shutdown plans. According to SMM's survey of 14 major domestic wire and cable companies with a combined sample capacity of 1.444 million mt, most factories are preparing for a relatively short production stoppage.

The average holiday duration for sampled enterprises this year was 2.07 days, unchanged from last year. However, the total statutory National Day holiday was reduced from 8 days to 7 days this year, resulting in an increased relative duration of actual production stoppages and leave arrangements.

Large-scale leading wire and cable enterprises are mostly choosing to continue production or implement minor production cuts to ensure continuity in project delivery. In contrast, small and medium-sized wire and cable factories show greater production flexibility, with those facing weak orders proactively extending shutdown periods and arranging leave as needed to reduce production and raw material holding costs.

Due to high copper prices and premiums, most factories are showing a weak willingness to stockpile raw materials. Instead of advance stockpiling, they are making cautious purchases as needed based on order progress, avoiding inventory impairment risks from copper price fluctuations.