March Operating Rates of Copper Pipe & Tube Producers Surge with High Air Conditioner Production Schedule

In February, the operating rate of copper pipe & tube producers 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 air-conditioning pipe orders, resulting in a higher operating rate 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, a few 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 by the mediocre performance of the real estate market and no support from exports. Military-use white copper pipe orders remained relatively stable, with an operating rate of 80%, but their overall proportion was small, contributing little to the operating rate of small enterprises.

In February, the raw material inventory ratio of copper pipe & tube enterprises was 4.69%, down 0.31 percentage points MoM. The center of February copper prices rose significantly compared to January, once exceeding 78,500 yuan/mt. Downstream purchasing sentiment was relatively steady. Raw material purchases on the day were mainly for same-day and next-day use, with no 2-3 day inventory prepared.

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 estimated at 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 increased by 11.4% YoY, while exports rose by 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 stated that the increase in March production was mainly driven by domestic demand.