Copper Price Correction Boosts Enamelled Wire Industry Demand

Copper prices have pulled back in recent days, triggering a concentrated release of orders in the enamelled wire industry. As a result, operating rates for machines used to produce enamelled wire rose significantly, exceeding expectations.

This week (September 11-17), the operating rate of enamelled wire industry machines increased by 5.2 percentage points from last week, reaching 72.73%. The improved performance was driven by the decline in copper prices, which had previously remained high and suppressed demand from downstream clients.

The decrease in copper prices led to a surge in new orders, with a 16.67% increase month-over-month. This was accompanied by a rapid destocking of finished product inventories at enterprises, with days of inventory pulling back to 10.12 days.

The correction in copper prices has driven a phased recovery in industry demand, and end-use demand is showing a marginal recovery trend. With the approaching Mid-Autumn Festival and National Day holidays, enamelled wire enterprises are planning to stockpile in advance, which has improved production enthusiasm.