Operating rates at copper pipe plants in April rose as expected

Operating rates at domestic copper pipe producers stood at 86.53% in April, up 0.56 percentage point on the month but down 2.25 percentage points on the year, according to an SMM survey of 24 producers with a total capacity of 2.53 million mt/year.

Copper prices continued to rise in April and exceeded 80,000 yuan/mt, putting pressure on some companies. In April, the average operating rate of large copper pipe companies was 93.09%; operating rates at medium-sized enterprises diverged. Most companies specialising in air-conditioner pipes were in full production, but the operating rates of engineering and supporting pipe companies declined due to high copper prices; small companies were mostly alloy pipe companies, and the weak real estate industry weakened the orders for brass pipes. The orders for cupronickel pipes such as military products were stable, but that had little impact on the overall operating rate due to a small proportion. The promotion of thinner diameter and lightweight copper pipes for air conditioners may be accelerated; meanwhile, leading companies may accelerate the "aluminium replacing copper” progress.

Companies such as Gree and Midea have invested trillions of yuan in response to the "old for new" project mentioned during the "Two Sessions", and home appliance consumption will be further improved.