Copper Price Surge Weighs on Enamelled Wire Industry Amid Off-Season

The enamelled wire industry experienced a decline in operating rates in July due to the traditional off-season and rising copper prices. According to SMM, the comprehensive operating rate was 69.97%, down 1.99 percentage points month-over-month (MoM) but up 2.72 percentage points year-over-year (YoY). Large enterprises had an operating rate of 73.63%, while medium-sized and small enterprises operated at 60.14% and 68.37% respectively.

The sharp rise in copper prices, which reached highs in mid-to-late July, led to a wait-and-see sentiment among downstream buyers, resulting in sporadic purchases for rigid demand. This forced enterprises to cut production schedules, further dragging down the industry's operating rate.

The inventory situation also slowed shipments due to weaker orders, with enamelled wire enterprises actively reducing production schedules. However, finished product inventories remained slightly elevated, with an industry average of 11.59 days' worth of inventory.