Benefiting from the shopping carnival of Spring Holiday, the whole industry was increasing in the first half of 2019.

Refrigerant: more benefits and bright future

With the tight raw materials supply, the price of refrigerants was increasing in the first half of 2019.  The reasons include 1) the raw materials of fluorite were increasing due to strict environment policies; 2) summer is busy season for refrigerants sale and the March to June for air conditioner production and May to July for maintenance; 3) the quota of R22 reduced again.  Next generation of refrigerants such as low GWPs HFOs is entering into the world market.

Scroll and rotary compressors: continual decrease

In 2018, China compressor market showed increase trend in the first half of the year and decrease in the second half of the year driven by the macro economic data.  In the first half of 2019, the air conditioning market showed unexpected with high stock of 49.87 million units by the end of May, which resulting the downturn of production in July under the pressure of high stock and demand.

The scroll compressor market showed unsatisfied with growth slowdown to 10% in the first quarter and in the second quarter, the domestic market was continually decreasing due to the impact of rotary compressor, but the export was upturn.

The rotary compressor market show flat production and better shipment when comparing with the same period of previous year with 3.64% increase in the first quarter, but decrease in the second quarter especially in June.

The export was impacting by the US-China trade war, which directly resulting the decrease of production and shipment of air conditioners.

Copper pipes: market shrinking and insufficient production

In recent years, the copper pipe industry tended to integrating.  In the first quarter of 2019, China copper pipe industry did not continual development after strong consumption in past 2 years and showed stagnation.  Now, the sales of air conditioners are entering into offseason, which significantly impacts the order for copper pipes.  Meanwhile, the copper pipe manufacturers have to cut down the price to get more orders, which will impact the profit and normal operation.