Copper Price Surge Amplifies Off-Season Pressure on Enamelled Wire Industry

The copper price surge has further pressured the enamelled wire industry, which is already experiencing off-season weakness. According to SMM, the comprehensive operating rate of the enamelled wire industry in July was 69.97%, down 1.99 percentage points from June and up 2.72 percentage points year-over-year.

Large enterprises saw an operating rate of 73.63%, medium-sized enterprises at 60.14%, and small enterprises at 68.37%. The industry's traditional off-season, combined with the bearish drag from copper prices shooting up, contributed to the decline in operating rates. In mid-to-late July, copper prices surged sharply, prompting strong wait-and-see sentiment among downstream buyers.

As a result, only sporadic rigid demand purchases were made, hindering new orders and forcing enterprises to cut production schedules. Finished product inventories remained at slightly high levels, with the industry's days of inventory standing at 11.59 days.