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

The enamelled wire industry saw its operating rate decline in July due to the traditional off-season and the sharp rise in copper prices. According to SMM, the comprehensive operating rate of the industry was 69.97%, down 1.99 percentage points from June but up 2.72 percentage points year-over-year.

The large enterprises within the industry saw an operating rate of 73.63%, while medium-sized and small enterprises had rates of 60.14% and 68.37%, respectively.

The July operating rate was pressured by the traditional off-season, during which production schedules at end-users slowed and procurement contracted. The sharp rise in copper prices also led to strong wait-and-see sentiment among downstream buyers, resulting in sporadic purchases for rigid demand only.

This difficulty in landing new orders forced enterprises to cut production schedules, further dragging down the industry's operating rate. Shipments slowed due to weaker orders, and enamelled wire enterprises actively reduced production schedules to manage inventory pressure.

The industry's days of finished product inventory stood at 11.59 days, with inventory pressure persisting. SMM forecasts the operating rate in August to be 67.87%, down 1.9 percentage points from July and up 1.32 percentage points year-over-year.