Copper Pipe & Tube Operating Rate Rose as Expected in March

The operating rate of copper pipe & tube in March was 85.23%.

According to SMM data, the operating rate of copper pipe & tube enterprises in March was 85.23%, up 14.95 percentage points MoM, but down 0.74 percentage points YoY. The operating rate of large copper pipe & tube enterprises in March was 89.94%. Although copper prices jumped initially and then pulled back this month, it did not have a significant impact on the orders of large enterprises, as most OEMs settled at the monthly average futures price. Large enterprises stated that on the basis of stable growth in domestic demand, exports of air conditioners and copper pipe & tube remained strong. Before the tariff was clearly implemented, the market's rush for export demand was obvious, so the comprehensive operating rate reached nearly 90%. The operating rate of medium-sized copper pipe & tube enterprises in March was 82.76%, which was also driven by the simultaneous growth of domestic sales and exports of air conditioners, showing positive operating performance. However, the export orders on hand were not sufficient, and the comprehensive operating rate was weaker than that of large enterprises. The operating rate of small enterprises was only 62.75%. The operating rate of copper pipe & tube orders for small enterprises was around 70%. A copper pipe factory in Shandong currently has its capacity in a stagnant state, dragging down part of the operating rate. Orders in the brass pipe market remained weak, while orders for cupronickel pipes grew backed by the shipbuilding industry, and demand for exports to France, Turkey, and Italy also increased.

The raw material inventory ratio of copper pipe & tube enterprises in March was 4.56%.

The raw material inventory ratio of copper pipe & tube enterprises in March was 4.56%, down 0.13 percentage points MoM. Copper prices rose step by step to a yearly high in March and began to fall at month-end, coinciding with the Qingming Festival when downstream restocking was active. The total raw material inventory increased by 17.83% MoM from March. However, production increased by 21.27% MoM, so the comprehensive raw material inventory ratio decreased slightly MoM.

The operating rate of copper pipe & tube enterprises in April 2025 is expected to be 85.81%.

According to SMM data, the operating rate of copper pipe & tube enterprises in April 2025 is expected to be 85.81%, up 0.58 percentage points MoM, but down 0.72 percentage points YoY. According to ChinaIOL data, the production schedule for domestic sales of air conditioners in April increased by 9.1% YoY compared to the actual domestic sales in the same period last year, while exports increased by 7.5%. In April, due to the impact of tariffs, the uncertainty of exports increased, and the growth rate of exports was weaker than that of domestic sales. Copper pipe & tube enterprises stated that the production schedule for April was relatively full at the end of March, and if copper prices pull back beyond expectations, orders will increase.