Settlement Disturbances Subside, Orders Recover Slightly, and Industry Off-season Trend Continues This Week - Shanghai Metals Market (SMM)
Summary
During the week of July 3‑9, the enamelled wire industry's machine operating rate increased by 0.07 percentage points week‑on‑week to 77.87%, while weekly order intake rose 0.25 percentage points. Order performance diverged: some companies reported new orders below expectations, whereas others gained from the conclusion of the mid‑year settlement cycle as downstream restocking brought significant new orders. Overall, the modest order growth was driven by a recovery in downstream stock‑piling willingness after settlement disturbances subsided. The end‑use market remained in its traditional off‑season, with demand steady but weak, downward pressure not intensifying, and end‑user rigid demand contributing only limitedly, with no sustained growth breakthrough yet apparent. As production edged up, finished‑product inventory days rose to 8.94 days, showing limited fluctuation. The underlying rigid demand remains weak, and the market is unlikely to shake off off‑season constraints in the short term. SMM forecasts that the operating rate will pull back slightly to 77.80% next week.
(Source:Shanghai Metals Market)