Copper Price Pullback Stimulates Enamelled Wire Industry Demand
The copper price experienced a pullback from 110,000 yuan/mt to around 107,000 yuan/mt between August 14-22. This decrease in prices led to an increase in downstream purchase willingness, causing order volumes for the enamelled wire industry to rise by 7.51 percentage points week-on-week.
Despite this uptick in orders, the machine operating rate in the enamelled wire industry only rose 2.6 percentage points week-over-week to 72.27% during the same period. This suggests that while demand has improved, it remains below pre-pullback levels.
Finished product days of inventory fell to 10.33 days this week, indicating a slight improvement in downstream cargo pick-up pace. However, some enterprises still hold relatively high levels of finished product inventories.
The industry is expected to see a slight pullback in the machine operating rate next week, with forecasts pointing towards a 0.07 percentage point decline to 72.20%. The focus will remain on closely monitoring copper price fluctuations and actual purchase follow-through from end-users.