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| Copper pipe |
Operating rate to drop to 80.07% amid weak exports, tariff pressures, and alloy pipe drag.
The operating rate of Chinese copper pipe & tube enterprises is expected to fall to 80.07% in May 2025, a 3.65 percentage point drop month-on-month and 3.25 points lower year-on-year, according to SMM.
In April, the sector’s operating rate reached 83.72%, down 1.51 points MoM and 2.81 YoY. Actual production slightly missed expectations, mainly due to delayed deliveries and a shift of orders to May. While large enterprises reported minimal April export disruptions, one Southeast Asia-based OEM manufacturer supplying to North America saw severe order impacts from tariffs.
Despite May typically being a seasonal peak, weak performance in alloy pipe and tariff uncertainty are now weighing on the market. The expected operating rate for large enterprises is just 79.64%, while medium-sized firms are outperforming, with an expected rate of 86.28%. These firms have absorbed domestic air conditioner market demand, with some seeing 20-day delivery lead times.
However, many copper tube manufacturers are witnessing declining new orders since early May due to the unpredictability of global tariffs, raising concerns that the sector may underperform during its traditional peak season.
Meanwhile, the raw material inventory ratio rose slightly to 4.68% in April, as just-in-time procurement dominated downstream activity and copper prices rebounded after an early April dip. The Labour Day holiday also contributed to end-of-month stock increases as large firms kept production stable.
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