Copper Prices Weigh on Chinese Enamelled Wire Industry
The enamelled wire industry in China continues to struggle due to high copper prices. According to SMM, machine operating rates in the industry fell by 0.67 percentage points from last week to 69.67% this week (August 7-13). This decline was accompanied by a decrease in order intake, which dropped by 1.88% from last week.
The industry is currently in its traditional demand off-season, and end-user rigid demand remains weak. As a result, downstream users' willingness to procure and stockpile materials remains subdued, leading to weak order performance. This has resulted in an increase in finished product inventory days, which rose to 10.62 days.
The dual pressures of the off-season market and high copper prices have led enterprises to curtail production to avoid inventory and cost risks. SMM expects machine operating rates to pull back further next week, projecting a rate of 69.07%.