SHANGHAI, Apr. 16 (SMM) – A recent SMM survey of 21 domestic copper tube/pipe producers reveals that most producers expect orders for April to keep stable. The average operating rate for April is believed to hold at 85.97%.
According to the survey, approximately 55% of surveyed producers understand that orders for April will hold stable after a sharp increase in March. Domestic traders have started to build up stocks ahead of the air-conditioner peak demand season, generally starting from May, allowing stocks at traders to grow. Whether or not copper tube/pipe demand will grow further depends on the performance of sales during the seasonally peak demand period. In other news, the National Development and Reform Commission released the Notice of Pilot Enterprises in Seawater Desalination Industry (first batch), but so far, the positive impact has not been felt.
About 40% of producers in the survey are optimistic towards orders in April, believing downstream demand producers will place more orders along with stabilized prices and the approach of a seasonally peak demand season.
The remaining takes a cautious attitude towards the outlook. New measures over the property market have taken effect, and downstream producers will reduce stock replenishment if strong consumption fails to materialize during a traditionally high demand period.