SMM

On August 25, 2024, the Ministry of Commerce and three other departments issued a notice on further promoting the trade-in policy for home appliances, specifying that local governments can independently determine the "8+N" types of subsidized home appliances, with a maximum subsidy of 2,000 yuan per item. With the national subsidy policy in place for several days, can the home appliance market continue its strong performance under the rapid stimulation of market demand? How are the related home appliance orders for enamelled wire companies performing? SMM has gathered insights from multiple home appliance manufacturers and enamelled wire companies, detailed as follows:

Home Appliance Company A: Recent orders are good, and the production schedule is full. Domestic demand has been weak this year, but it has improved after the national subsidy policy. Exports have always performed well, but a large proportion of products are exported to the US, raising concerns about US tariffs. There have been some rush exports, and it is believed that tariffs will not change significantly until after March, so export orders are expected to continue growing in the near term.

Home Appliance Company B: November orders continued the performance of October, with the "Double 11" shopping festival having a positive impact. Orders for water heaters also performed well. Orders for the next three months are expected to remain stable, with the peak season effect still quite evident.

Home Appliance Company C: November is the peak sales season, but brown goods have not performed well, while white goods have done well. The company has expanded its domestic and export sales channels this year, and with the support of the national subsidy policy, sales and profits of refrigerators, air conditioners, and washing machines have been good. Based on experience, orders before the end of the year are expected to remain at good levels.

Refrigeration Equipment Company D: Recent orders have increased, and finished product inventories have decreased, likely driven by the positive impact of the national subsidy policy for home appliances.

Home Appliance Company E: Overseas markets are in the restocking peak season, and recent export market performance has been good, while domestic sales are slightly weaker. The impact of major promotions has slightly faded, and there are no particular expectations for future orders.

Home Appliance Company F: November orders were slightly better than October. The company's main products are exported to Europe and the US, and tariffs are a recent concern. There is a noticeable impact on overseas customer orders due to tariffs.

Enamelled Wire Company G: Recent orders from the home appliance sector have been good. November orders were numerous, and the production schedule is quite busy. December orders are also expected to remain at good levels.

Enamelled Wire Company H: November saw strong production and sales, with significant growth in demand from air conditioner companies. Export orders were also good, with operating rates exceeding 80%. December is expected to maintain high operating rates.

Enamelled Wire Company I: Recent orders have been good, with significant boosts from home appliance orders. The national subsidy and major promotions have had a clear effect. Additionally, some end customers are rushing exports due to concerns about increased US tariffs.

Enamelled Wire Company J: Recent home appliance orders have been good, with growth in small home appliances. Orders for small gauge wires are numerous, creating a sense of undersupply.

Enamelled Wire Company K: Boosted by demand from the automotive and home appliance sectors, November enamelled wire sales exceeded expectations, with shipments up 33% YoY and 15% MoM. Growth in automotive motors, relays, micro motors, and solenoid valves was particularly significant.

Overall, with the strong push from the national subsidy policy, combined with the sales boom of the "Double 11" and "Double 12" shopping festivals, the home appliance market has been booming. The production and sales of white goods such as air conditioners, washing machines, and refrigerators, as well as small home appliances, have seen significant growth, driving a substantial increase in enamelled wire orders. Additionally, the issue of US tariffs is a key concern within the industry, with many downstream customers rushing exports due to concerns about increased tariffs, boosting short-term demand. According to the latest production schedule report for the three major white goods released by ChinaIOL, the total production volume of air conditioners, refrigerators, and washing machines in December 2024 is expected to reach 33.98 million units, up 21.7% YoY. Industry companies generally hold an optimistic view of pre-year-end consumption, and SMM expects that demand for enamelled wire from the home appliance sector will remain strong in December.