Copper Price Surge Crushes Enamelled Wire Demand and Operating Rates
Copper prices have surged to new highs, causing a sharp contraction in demand for enamelled wire, which is used extensively in various industries. The operating rate of the enamelled wire industry machines fell by 1.67 percentage points to 70.33%, down 8.27 percentage points compared to the same period last year. This decline is attributed to the traditional off-season demand and the rigid market backdrop.
The recent surge in copper prices has triggered a fear of high prices among downstream companies, causing their willingness to place orders to plummet. The weekly orders have pulled back significantly by 6.86 percentage points. As a result, enterprises' shipment pace slowed down, and days of finished product inventories rose to 10.42 days this week.
Companies are actively tightening their production plans to control inventory risks. SMM expects that next week, the operating rate of the enamelled wire industry will further pull back to 69.53%. The off-season backdrop, compounded by the staged surge in copper prices, has created strong bearish pressure on the market.