Enameled Wire Industry Operating Rate Continues to Decline Amid Multiple Uncertainties

The enameled wire industry saw its operating rate decline for the second consecutive month in August, according to data from SMM Metal. The comprehensive operating rate stood at 67.95%, down 2.02 percentage points from July but up 1.4 percentage points year-over-year.

The decline was attributed to a combination of factors, including weak off-season demand and high-priced raw materials. Copper prices continued to rise, breaching the 110,000 yuan/mt threshold briefly in August, which led to a decrease in downstream procurement willingness.

The Jiangsu-Zhejiang region was also affected by typhoon weather, with some downstream enterprises implementing phased production cuts and suspensions, further weighing on actual enameled wire demand. Despite emerging sectors providing some level of rigid demand support, this was insufficient to offset the multiple headwinds, resulting in an overall weak order performance.

SMM forecasts that the comprehensive operating rate will decline modestly in September, reaching 67.89%. Industry enterprises' expectations for the month show clear divergence, with some optimistic about traditional end-user sectors gradually entering the peak season and anticipating a possible modest recovery in demand.