SMM Expects Operating Rates to Fall at Chinese Copper Tube/Pipe Producers in July

SHANGHAI, Jul. 17 (SMM) – Operating rates at copper tube/pipe producers in China rose in June, but will fall back in July, SMM predicts.

SMM’s survey of 19 domestic copper tube/pipe producers with capacity totaling 1.77 million tonnes showed their operating rates averaged 89.82% in June, up 19.38 percentage points year-on-year and 0.27 percentage point month-on-month. 

Most copper tube/pipe producers ran at full capacity in June as high temperature, replacement demand, stock replenishment and last year’s frenzy real estate market boosted air-condition demand.

Large air-conditioner producers are expected to keep high operating rates in July. But, air-conditioner stocks have reached 42-43 million units, which will likely depress production in the future, SMM warns. 

SMM expects operating rate at domestic copper tube/pipe producers to drop to 89.05% in July. About 84% of those surveyed will keep production unchanged, while 16% of them expect orders to reduce with arriving of off-season. 

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