The operating rates of enamelled wire producers averaged 72.95% in May, up 4.66 percentage points YoY but down 2.07 percentage points MoM, SMM survey showed. The figure was 1.03 percentage points higher than expected. The average operating rate of large, medium-sized and small enterprises was 75.23%, 69.41% and 67.84% respectively.
Downstream purchase volume increased more than expected amid falling copper prices in May, but the overall demand remained poor. Only orders from new energy vehicle industry picked up. Orders from power sector stabilised. According to the China Passenger Car Association (CPCA), the output of generalised passenger vehicles in China in May 2023 was 2.001 million, a year-on-year increase of 18.0%, and a month-on-month increase of 14.7%. The output of new energy vehicles in May was 668,000, an increase of 53.7% on the year, and an increase of 11.4% month-on-month, providing support for orders in the enamelled wire industry. On the whole, the orders of enamelled round wire enterprises declined in May, but those at enamelled flat wire enterprises remained stable.
