Enamelled Wire Industry Sees Pre-Holiday Production Surge Amid Slumping New Orders

The enamelled wire industry's production schedule is gearing up for a pre-holiday push, but new orders are dwindling significantly.

This week, from September 18 to 24, the operating rate of enamelled wire industry machines rose 2.4 percentage points to 75.13%. The increase in operating rates was driven by both concentrated releases of orders last week and plans for shutdown or reduced production during the National Day holiday.

Despite enterprises ramping up production before the holiday, downstream cargo pick-up remained strong, resulting in a month-over-month decline in finished product inventories. Days of finished product inventories fell to 10.07 days.

Affected by high copper prices and premiums before the holiday, coupled with tight copper rod supply in South China, enterprises were cautious about raw material stockpiling. With logistics guaranteed during the holiday, there was no need to stockpile large quantities of materials in advance, causing days of raw material inventories to rebound slightly to 3.13 days.