[SMM analysis] the output of household appliances decreased, and the operating rate of copper pipes was lower than expected.

Published: Jun 6, 2019 21:17

SMM, June 6-according to SMM survey data, the operating rate of copper pipe enterprises in May was 90.93%, down 2.98 percentage points from the same period last year and 0.86 percentage points from the previous month.

According to SMM, the opening rate of copper pipe enterprises in May was the same and weaker than the previous month, and compared with the SMM forecast of 93.24 percent in May last month, the trend of advancing consumption in the off-season this year is becoming more and more obvious. And because the inventory base of the air conditioning industry remains high, and affected by the trade conflict between China and the United States, the trade market atmosphere has become weaker. SMM learned that the external sales volume of the air conditioning industry is planned to decrease by 15.7 percent in May compared with the previous month. As a result of the decline in the overall output of air conditioners, which has also curbed the consumption of copper pipes, there are signs of a decline in the start-up rate this month. In addition, in the course of the SMM survey, most companies said that new orders in hand were weaker than in the same period in previous years, adding to concerns about the impact of the off-season on capacity utilization.

In May, the raw material inventory ratio of copper pipe enterprises was 13.63%, an increase of 0.28 percentage points from the previous month. Copper prices fell sharply in May, and some enterprises took advantage of low prices to prepare stocks, but the increase was relatively small. The main reason for the increase in raw material inventory is still due to the reduction in copper consumption. Most enterprises said that they are still not optimistic about the market situation, in order to avoid capital risk, do not want to hoard too much goods, to ensure the rigid demand of daily production.

According to the SMM survey, the operating rate of copper pipe enterprises is expected to be 89.94% in June, a decrease of 0.99 percentage points from the previous month and a decrease of 5.66 percentage points from the same period last year. The trend of air-conditioning off-season in June is more obvious. According to SMM, air-conditioning production and sales volume fell by about 9% in June compared with the same period last year, and domestic sales were significantly lighter. Although this year, China has increased subsidies for home appliances to the countryside, but according to SMM, the big head of the air-conditioning industry said that the impact of subsidies to stimulate consumption is relatively small, so it is expected that the subsequent copper pipe demand will continue to fall, and copper pipe enterprises will be under pressure to start work.

 

 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Feb 6, 2026 23:56
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Read More
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan
Feb 6, 2026 23:56
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Feb 6, 2026 23:54
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Read More
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.
Feb 6, 2026 23:54
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Feb 6, 2026 23:47
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Read More
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."
Feb 6, 2026 23:47