Enamelled Wire Industry Struggles with High Copper Prices and Weak Demand

The enamelled wire industry continued to face challenges due to high copper prices. According to Shanghai Metals Market, the operating rate of equipment in the enamelled wire industry fell by 0.4 percentage points to 71.87% from August 21-27. This decline was largely driven by weak demand and a decrease in purchase willingness among downstream buyers. The high copper prices have been a major concern for the industry, leading to a decrease in new orders and a subsequent drop in order intake of 3.70% month-over-month.

Additionally, finished product inventory days rose to 10.45 days during the week, indicating that some enterprises are facing pressure due to weaker demand and slower shipments. The market is expected to remain sluggish in the short term, with a predicted operating rate of 70.13% for next week. The industry's performance has been impacted by both high copper prices and insufficient off-season demand.

The recent typhoon weather in Zhejiang also contributed to the decline in demand, as some motor plants suspended production. As a result, the enamelled wire industry extended its relatively weak trend, with no clear improvement expected in the near future.