Chinese Air Conditioner Makers Hold Prices Steady Despite Copper Price Surge

China: Despite the rising costs of copper, a crucial material in the air conditioning industry, Chinese air conditioner manufacturers are unlikely to raise prices this summer. High inventory levels and low demand have kept prices stable compared to last year. Manufacturers are cautious about increasing prices, fearing it could lead to a further decline in sales.

Earlier this year, an oversight led to excessive production. Encouraged by high demand during last summer's unusually hot temperatures, manufacturers ramped up production this spring. However, poor sales during the May Day holiday have resulted in large inventories.

Additionally, the demand for cooling devices has decreased due to higher than usual rainfall in the southern regions of China in recent months.

Last week, copper futures on the Shanghai Futures Exchange reached a record high of USD 12,223 per ton, marking a 30% increase from the start of the year. Despite this, air conditioner brands are absorbing the additional costs.

However, the impact of rising copper prices may become more pronounced in the second half of the year, posing greater risks for smaller enterprises compared to larger brands.

Source: Yicai Global