SHANGHAI, Sept. 6 (SMM) –Based on a recent SMM survey of 20 major domestic copper tube/pipe producers, about 65% producers expected September orders to remain flat with August levels, while 25% producers kept positive expectations.
About 65% producers in the survey said orders for September would remain weak as August, due to a sharp drop in copper tube/pipe demand from air conditioning industry. The implementation of stimulus policies of China's Central Government during 2009 and 2010 significantly boosted demand for copper tube/pipe, even during the seasonal low demand period. However, as these incentive policies have been canceled, copper tube/pipe demand are now negatively affected by the seasonal low demand period. However, SMM believes demand for copper tube/pipe will gradually improve at the end of September.
Around 25% surveyed producers had optimistic expectations towards September orders. They believed that consumption of copper tube/pipe during August was the weakest for the year, and that air conditioner enterprises will gradually make stocks after the end of summer, which will help order volumes gradually increase. Meanwhile, some copper alloy tube enterprises told SMM that they had already felt the growth of orders at the end of August as copper prices stabilized, since both overseas and domestic demand was good.
The remaining 10 producers in the survey held unclear views towards future orders.