Copper Pipe & Tube Operating Rates Decline with Air Conditioning Production and Sales

According to SMM data, the operating rate of copper pipe & tube enterprises was 68.84% in December, up 5.01 percentage points MoM but down 14.10 percentage points YoY.
Copper prices rose from 90,000 yuan per mt to 100,000 yuan per mt in December, yet the operating rate of copper pipe & tube enterprises was not significantly affected. Large enterprises maintained stable orders, which rebounded slightly compared to November. Some enterprises increased production at year-end to build inventory for the New Year holiday, leading to higher output.

Medium-sized enterprises reported that orders from air conditioner manufacturers did not decrease significantly, but the pace of cargo pick-up slowed. Orders from the maintenance market weakened, and finished product inventories increased. Small enterprises indicated that they were noticeably affected by both domestic and export orders, and their operating rate remained low.

SMM expects the operating rate of copper pipe & tube enterprises to be 66.66% in January 2026, down 2.17 percentage points MoM and down 4.28 percentage points YoY.
According to ChinaIOL data, the domestic production schedule for household air conditioners in January increased by 8.9% compared to the actual sales performance in 2025, while the export schedule rose by 1.2% compared to the actual export performance in 2025.