Operating Rates Of Copper Pipe Plants Exceeded 90% in May

Operating rates at domestic copper pipe producers stood at 90.08% in May, up 1.30 percentage points on the month and 14.21 percentage points on the year, according to an SMM survey of 23 producers with total capacity of 2.3 million mt/year.

A combination of strong production schedules of air-conditioning enterprises and the sharp drop in copper prices in the second half May raised operating rates at copper pipe plants.

The report of the World Meteorological Organization shows that the global temperature may hit a new high in the next five years. This boosted the sales of air conditioners this year. The production schedules of air conditioners at the end of the first quarter and the entire second quarter of this year were and will be brisk.

Demand for brass tubes was mixed. Orders for brass tubes used in civil fields such as bathrooms and towel racks were still weak due to the sluggish real estate market. China acted to ensure that the real estate is delivered according to the quality and quantity, but that will affect end-user demand with a lag. In contrast, industrial pipe sector was strong.  According to market information, China has received a large number of orders for new ships from around the world in recent months Production at one shipyard has even been scheduled until after 4 years. The rapid growth of orders in the shipbuilding industry directly drove brass consumption by the navy.

On the whole, copper pipe sector outperformed other copper semis sectors.