[SMM Analysis] Overview of closures of Chinese copper tube companies during the Mid-Autumn Festival and National Day holidays

The Mid-Autumn Festival coincides with the National Day, and there are 8 days of national statutory holidays. SHFE copper futures trading will be suspended for nearly 10 days including Saturday and Sunday. SMM conducted a survey on the production and current stocking situation of Chinese copper tube companies (annual production capacity ≥50,000 tons) during the holidays. Non-production personnel of enterprises basically take holidays in accordance with national statutory holidays, but production workers basically will only take 2-5 days off.

The leading enterprises (annual production capacity ≥ 300,000 tons) will close for 3 to 8 days. If there is an urgent need to deliver orders, the closures will be shorter.

Medium-sized enterprises (100,000 tons ≤ annual production capacity <300,000 tons) will have 3-4 days off. It is reported that they are actively stocking up. In addition to the demand for fixed long-term contracts, they will still purchase cargoes sufficient for 10 days of production.

Small enterprises (annual production capacity <100,000 tons) will close for 2-5 days during the holidays. The number of holiday days in East China is shorter than that in South China. However, stocking has been basically completed, and there is basically no need for large-volume purchases in two days.