SHANGHAI, Jun. 6 (SMM) – With regard to copper tube/pipe orders in June, the latest SMM survey of major domestic copper tube/pipe producers revealed the following:
80% of copper tube/pipe producers SMM surveyed anticipate that their orders during June will stay flat with May. These producers said although the government has introduced favorable policy to subsidizing energy-saving air conditioner producers, copper tube/pipe demand will not increase until July and August and then weaken the effects of traditional low demand period. However, the ongoing curbs in the Chinese housing sector will restrict the stimulus of the new policy on household air conditioner consumption. Moreover, the new policy is mainly targeted for the first and second-grade air conditioner, but China mainly produces third-grade air conditioner. In addition, air conditioner consumption already increased sharply in 2010 and 2011, driven by the move of promoting household appliances in the countryside and policy of replacing old for new ones.
15% of producers expect copper tube/pipe demand will fall in June as the traditionally low demand period nears.
5% of the copper tube/pipe producers contacted by SMM holds the view copper tube/pipe demand will increase and boost orders in June.