[SMM Analysis] the off-season of consumption comes ahead of schedule and the opening rate of copper pipes in June is already cool.

Published: Jul 11, 2019 18:03

Source: Shanghai Nonferrous Metals Network

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According to SMM, the operating rate of copper pipe enterprises fell sharply in June compared with the same period last year, and the off-season of the copper pipe industry this year is earlier than previous years, and some enterprises said that due to the current copper pipe industry profits are not high and the account period is longer, but also to attract orders and cut copper pipe processing fees, enterprises have greater pressure, consider reducing some production capacity, in order to save costs. In addition, due to the weak domestic consumption, superposition affected by trade disputes, export setbacks, the air-conditioning industry accumulation is obvious, high inventories also inhibit copper pipe consumption.

SMM, July 11 / PRNewswire-Asianet /-

The operating rate of copper pipe enterprises in June was 86.38%. According to SMM survey data, the operating rate of copper pipe enterprises in June was 86.38%, down 9.22% from the same period last year and 4.55% from the previous month. (research enterprises: 19, production capacity: 2.13 million tons) according to SMM, the operating rate of copper pipe enterprises fell sharply in June compared with the same period last year, the off-season of the copper pipe industry this year is earlier than previous years, and some enterprises said that due to the current copper pipe industry profits are not high and the account period is longer, but also to attract orders and cut copper pipe processing fees, greater pressure on enterprises, consider reducing some production capacity, in order to save costs. In addition, due to the weak domestic consumption, superposition affected by trade disputes, export setbacks, the air-conditioning industry accumulation is obvious, high inventories also inhibit copper pipe consumption.

In June, the raw material inventory ratio of copper tube enterprises was 14.15%. In June, the raw material inventory ratio of copper tube enterprises was 13.63%, an increase of 0.52 percentage points from the previous month. The ratio of raw material stocks continued to increase in June, on the one hand, due to the pressure of weak consumption in the industry; on the other hand, due to the low copper prices in early June, some enterprises considered speculative operations and appropriate hoarding of goods, resulting in an increase in raw material stocks in June.

The operating rate of copper pipe enterprises is expected to be 7901% in July, which is 7.37% lower than the previous month and 10.48% lower than the same period last year, according to a survey by SMM. The decline in the operating rate of copper pipes in July was even more obvious. According to SMM, the production of key air conditioners in China fell by more than 10 per cent in July compared with the same period last year. Overall sales fell sharply in July after air-conditioning companies ended their mid-year push in June, adding to concerns among copper pipe companies and a sharp drop in new orders. SMM expects subsequent copper pipe demand to continue to fall, and copper pipe processing fees are expected to continue to be reduced.

Copper pipe; average operating rate;

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