In November, the operating rate of copper pipe industry benefited greatly from the hot air-conditioning industry

According to statistics from the media, the average operating rate of copper pipe enterprises this month was 77.2%, a slight decrease of 0.6% from 77.8% in October, and it still maintained a relatively high level.

Shanghai Nonferrous Network analysis pointed out that the main reason behind the support of copper pipe companies' orders to maintain high prices is the boom in sales of air conditioners. Most copper pipe companies stated that this relatively adequate order situation is expected to continue to the eve of the Spring Festival.

Orders remained stable during the year Last week, Shanghai Nonferrous Metals conducted research on 20 major domestic copper pipe companies. According to research, 75% of copper pipe companies believe orders will remain stable next month. Due to the good demand of the air-conditioning industry, many copper companies are still making orders for October, and new orders have not changed much. Some companies' orders have been received by the end of December. At the same time, the inventory requirements and the stocking demand in 2011 are also good. However, the current copper price is relatively high and there is also a certain degree of restraint on downstream demand.

Another 20% of companies expect orders to decline next month. This is mainly because the area where some companies are located has just started to limit electricity and will continue until the end of the year, leading to a reduction in the operating rate and the volume of orders.

According to research, the level of raw material inventory of enterprises has increased from 17.4% in the last survey to 21.3% this time. Shanghai Nonferrous Metals believes that before the company’s inventory was consumed too much, some of the companies were replenished at lower prices after the price of copper fell. As a result, the inventory increased.

As domestic demand remained strong, coupled with renminbi appreciation, foreign trade barriers and other factors depressing the attractiveness of copper export orders for companies, the proportion of brass exports from relevant companies has recently declined.

The market's ups and downs were significantly different. Shanghai copper's 1103 main contract opened at the beginning of November with an opening price of RMB 63,010/ton. On the 11th, it reached a new high of RMB 70,200/ton during the year, and began to plummet. As of November 24, the closing price was RMB 62,500/ton, which was short. In the short 10 trading days, the decrease reached 10.96%.

Nearly 50% of companies surveyed believe that copper prices will also fluctuate, and the future trend is uncertain. Recently, the growth rate of CPI was too high, and the relevant government departments also launched a series of continuous adjustment measures beyond market expectations. It is expected that there will be a “package” of price control measures in the future, but the specific time and intensity cannot be judged. This undoubtedly increases copper prices. The difficulty of determining the trend. Moreover, the recent surge in the price of copper has plunged and the volatility is too high, making it difficult for the market to judge the long-term trend.

However, some companies that are bullish on the outlook believe that the current decline in copper prices is temporary. Copper's supply and demand fundamentals are better than other metals. Moreover, globally, copper is still in short supply, and copper demand is still growing. As a result, copper prices have fallen. There is little space, and the market outlook remains bullish.