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[SMM analysis] the output of household appliances decreased, and the operating rate of copper pipes was lower than expected.
Jun 6,2019 21:17CST
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The content below was translated by Tencent automatically for reference.

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.

 

 

Copper pipe; average operating rate;

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