SHANGHAI, Feb 21 (SMM) – Operating rates across Chinese manufacturers of copper tube and pipe climbed 3.19 percentage points from December to stand at 77.9% in January, SMM data showed. This came after the rate jumped 4.43 percentage points month on month in December.
In January, seasonality factors continued to boost orders for air-conditioners, and this grew demand for copper tubes and pipes. On a yearly basis, the rate slid 6.94 percentage points as export demand fell short of a year ago.
Scheduled output at producers of air-conditioners increased 17% on the month, and rose 2% on the year in January. While production for domestic sales grew significantly, output for exports rose at a slower rate after exporters rush to beat tariffs in the fourth quarter of 2018.
China's trade data in January showed that the growth rate of domestic import and export remained robust. This raised operating rates across copper tube and pipe plants on the month. On a yearly basis, a higher inventory base in the home appliance industry kept the rate lower in January. Most producers said that planned output in 2019 barely changed from 2018.
The ratio of raw material inventory to output at copper tube and pipe producers came in at 16.43% in January, up 0.37 percentage point as plants stockpiled for CNY.
For February, CNY closures are expected to lower operating rates across manufacturers of copper tube and pipe by 19.62 percentage points month on month, to 58.28%. This will be 9.29 percentage points lower from February 2018.
In a statement on Monday January 28, the National Development and Reform Commission (NDRC) said that China will boost domestic consumption in fields of automobile, home appliance sectors.
