Air-Conditioner Market Boom to Sustain Strong Copper Tube/Pipe Production in June, SMM Survey

SHANGHAI, Jun. 12 (SMM) – SMM’s survey of 20 domestic copper tube/pipe producers, with capacity totaling 1.78 million tonnes showed their average operating rate was 89.55% in May, down 1.84 percentage points from April, but up 14.15 percentage points from a year ago.  

SMM attributes the month-on-month decline to expansion at Hailiang Group and the year-on-year growth to low base in the same period last year. 

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Air-conditioner hose shortage has allowed copper tube/pipe production to be strong since the beginning of this year. 

Four factors contributed to the boom in air-conditioner sector, SMM understood. First, traders replenished inventories after two years of destocking. Moreover, rising raw material prices also boosted buying interest. Second, steady growth in home sales and areas of houses completed spurred air-conditioner demand. Third, early arrival of high-temperature weather in north China also boosted air-conditioner demand. Fourth, replacement demand rose. 

SMM expects operating rate at copper tube/pipe producers to remain high at 89.55% in June in anticipation of decent sales. 

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