SHANGHAI, Jan 11 (SMM) – Operating rates across Chinese manufacturers of copper tube and pipe climbed 4.43 percentage points month on month to stand at 74.71% in December, SMM data showed.
In December, seasonality boosted orders for air-conditioners, while annual sales targets drove some manufacturers of end products to rush out export shipments. This grew demand for copper tubes and pipes.
Information from industrial consulting firm ChinaIOL showed that Chinese air-conditioner producers planned to produce 11.35 million air-conditioners in December, up 38% from a year earlier.
On a yearly basis, the December operating rates across copper tube and pipe producers lost 10.43 percentage points due to a high statistical base of December 2017. Home appliance consumption was robust in 2017.
The ratio of raw material inventory to output at copper tube and pipe producers came in at 16.06% in December, up 0.21 percentage point as plants stockpiled raw materials for the New Year’s Day holiday. Anticipation of increased orders also prompted them to purchase more raw materials.
Operating rates across Chinese manufacturers of copper tube and pipe are expected to remain barely changed at 74.74% in January.
A high statistical base a year ago and an earlier Chinese New Year are expected to lower January rates by 10.13 percentage points on a yearly basis.
SMM surveyed 19 copper tube and pipe producers with capacity totalling 1.95 million mt.
