Steady Operation of Copper Pipe & Tube in February, High Production Schedule in March Driven by Air Conditioner Demand [SMM Analysis]

》View SMM Metal Quotes, Data, and Market Analysis

》Subscribe to View Historical Spot Price Trends of SMM Metals     

      In February, the operating rate of copper pipe & tube enterprises was 70.28%

      According to SMM data, the operating rate of copper pipe & tube enterprises in February was 70.28%, down 0.66 percentage points MoM and up 22.65 percentage points YoY. Large copper pipe & tube enterprises recorded an operating rate of 73.71% in February, as they barely halted production during the Chinese New Year and had sufficient orders for air conditioner pipes, resulting in a rate higher than the overall level. Medium-sized copper pipe & tube enterprises recorded an operating rate of 69.31% in February, supported by export orders, which kept production relatively stable. However, some medium-to-small enterprises only resumed operations after the seventh day of the Chinese New Year, dragging down overall production. The installation pipe market remained mediocre, and export demand was weak. Small enterprises had an operating rate of only 52.23%, with some brass alloy pipe orders weakened due to the mediocre performance of the real estate market, and exports provided no support. Orders for military-use white copper pipes remained relatively stable, with an operating rate of 80%, but their small overall proportion contributed little to the operating rate of small enterprises.

      In February, the raw material inventory ratio of copper pipe & tube enterprises was 4.69%

      In February, the raw material inventory ratio of copper pipe & tube enterprises was 4.69%, down 0.31 percentage points MoM. The center of copper prices in February was significantly higher than in January, once exceeding 78,500 yuan/mt. Downstream purchasing sentiment remained relatively stable, with raw material procurement mainly for same-day or next-day use, without stocking up for 2-3 days.

      The operating rate of copper pipe & tube enterprises in March 2025 is expected to be 82.33%

      According to SMM data, the operating rate of copper pipe & tube enterprises in March 2025 is expected to be 82.33%, up 12.05 percentage points MoM and down 3.63 percentage points YoY. According to ChinaIOL data, the production schedule of household air conditioners in March is expected to grow 11.4% YoY, with exports up 9.2% YoY. Despite the tariff hike on home appliances announced by Trump, air conditioner exports have not been significantly impacted for the time being. Copper pipe & tube enterprises indicated that the production increase in March is mainly driven by domestic demand.

                                                                                                                 》View SMM Metal Industry Chain Database