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According to SMM, the comprehensive operating rate of the enamelled wire industry in February was 55.99%, down 5.48 percentage points MoM, up 10.88 percentage points YoY. Among them, the operating rate of large enterprises was 59.49%, medium-sized enterprises 49.69%, and small enterprises 52.59%.
From the operating rate data, the significant YoY increase in February's enamelled wire operating rate was mainly due to the different timing of the Chinese New Year holiday. According to SMM, February had relatively fewer working days, and most enamelled wire enterprises only resumed production around February 10, with actual production time for most companies limited to 15–20 days. The shortened production time directly constrained capacity release, dragging down the overall operating rate. Additionally, downstream enterprises generally resumed operations gradually after the Lantern Festival, leaving enamelled wire companies with insufficient orders to maintain equipment operation in the first half of the month. Although industry orders improved continuously in late February, their boost to the operating rate was limited. Overall, the Chinese New Year holiday was the key factor affecting the decline in February's operating rate.
In February, the raw material inventory/output ratio of enamelled wire enterprises was 14.84%, up 0.95 percentage points MoM, while the finished product inventory/output ratio was 39.11%, down 5.76 percentage points MoM. Currently, the finished product inventory/output ratio of enamelled wire enterprises remains relatively high, mainly due to low production levels in February. However, in terms of finished product inventory volume, most enamelled wire enterprises had reduced their finished product inventories to low levels by month-end.
Data Source: Compiled by SMM
The operating rate of the enamelled wire industry in March is expected to be 72.91%, up 16.92 percentage points MoM, down 1.5 percentage points YoY.
From the perspective of end-use demand, recent orders from sectors such as home appliances, auto parts, and power transformers have been considerable. Among them, the home appliance sector has shown particularly strong demand for enamelled wire. According to relevant enamelled wire enterprises, current orders have been scheduled until the end of March, with a substantial volume of orders on hand. Typically, March is the traditional peak season for the enamelled wire industry. Based on the current order performance, it is expected that the order volume in March will remain at the level typical of the peak season.
