SHANGHAI, Dec 17 (SMM) -
Operating rates at 85.18% in November
The operating rates at domestic copper tube/pipe producers stood at 85.18% in November, 9.23 percentage points higher month on month and 4.55 percentage points higher year on year, according to an SMM survey of 22 producers with a total capacity of 2.2 million mt/year.
The operating rates of copper tube/pipe plants rebounded sharply from the previous month in November, denoting the arrival of the peak season. Driven by the exports, the production enthusiasm of terminal home appliances companies continued to rise. The production schedule in the air-conditioning industry remained tight in November. The planned exports of eight key air conditioner manufacturers have surged 29.3% year-on-year, and the total planned output has increased 10%, boosting the demand for copper tube/pipe. In addition to the seasonal increase in orders, the orders that were delayed due to previous power rationing were all performed in November. Some medium-sized and large copper tube/pipe manufacturers produced at full capacity, significantly bolstering the operating rates of copper tube plants.
Ratio of raw material inventory to total output at 10.02% in November
The ratio of raw material inventory to the total output stood at 10.02% in November, a drop of 0.82 percentage point on the month. The production rush during the peak season in the copper tube/pipe sector has accelerated the consumption of raw materials. But as the copper prices have fluctuated sideways around 70,000 yuan/mt for an extended period, most plants kept purchasing cautiously and refrained from hoarding. The ratio of raw material inventory to the total output at copper tube/pipe plants remained stable.
Operating rates to stand at 88.20% in December
The operating rates are expected to stand at 88.20% in December, up 3.03 percentage points month-on-month and 6.15 percentage points year-on-year. According to the ChinaIOL, the production schedule at key air-conditioner manufacturers in December rose 18% from November with support from exports. The demand for copper tube/pipe thus remained strong. However, the recent COVID-19 pandemic in Zhejiang has not had a significant impact on the production of copper tube/pipe, mainly due to the lower efficiency of transportation.
