SHANGHAI, Aug. 3 (SMM) - China’s copper tube/pipe producers are expected to benefit from improvement in air-conditioner demand during July-August, SMM says.
High temperatures worldwide boosted demand for air-conditioners. Output at domestic top 8 air-conditioner manufacturers increased 0.21% year-on-year to 6.82 million sets in July, SMM finds. Their output in August is expected to be 6.58 million sets, up 9% year-on-year.
Domestic air-conditioner producers suffered from high inventories in 2016, but their inventories fell after destocking and better exports, which witnessed an 8.4% year-on-year increase in the first six months of this year.
“Higher air-conditioner production will drive up operating rates at domestic copper tube/pipe producers in July and August from the same period of last year,” said one SMM copper analyst. “Output at several large domestic copper tube/pipe plants appeared to have risen in July after months of declines.”
But copper tube/pipe demand will unlikely pick up significantly, SMM added. Most large air-conditioner plants were unwilling to increase production noticeably due to concerns over orders and inventories.
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