SHANGHAI, Dec. 31 (SMM) – The average operating rate at copper tube/pipe producers in SMM’s survey sample was 71.62% in November, down 0.68 percentage point MoM and 5.35 percentage points YoY.

Copper prices fell, but processing fees for bare tube/pipe and air-conditioner tube/pipe remained at RMB 3,000/mt and RMB 6,000-8,000/mt, respectively, squeezing profit margins.

Besides, the APEC meeting in early November also undermined production at some producers in north China.

Moreover, air-conditioner manufacturers were confronted with mounting inventories and poor orders, cutting copper tube/pipe consumption and cooling enthusiasm for copper tube/pipe production.

Copper tube/pipe producers will supply mainly large end users, and demand from shipbuilding sector has picked up somewhat. As such, the average operating rate at copper tube/pipe producers is expected to climb to 71.74% in December.