Enamelled Wire Industry in China Continues Weak Trend Amid High Copper Prices

The enamelled wire industry in China continued its weak trend due to high copper prices and weak demand. The operating rate of enamelled wire industry machines fell from 71.87% last week to 69.40% this week, a decline of 2.47 percentage points. This was largely due to the weakening purchasing power of downstream buyers who were hesitant to purchase at current price levels.

Copper prices fluctuated throughout the week, but remained high enough to deter demand. As a result, new orders at most enterprises performed poorly, leading to a decrease in order intake by 1.14 percentage points this week compared to last week. Finished product inventory days rose to 10.98 days this week due to weakening orders and shipments falling short of expectations.

The industry machine operating rate is expected to rebound slightly next week, but the market is not expected to show significant improvement in the short term. High copper prices continue to exert pressure on the enamelled wire industry, making it difficult for enterprises to operate profitably.