BEIJING, May 25 -- Domestic air-conditioner makers are raising their prices
to pass on high copper prices to consumers and relieve some pressure on profit
margins, industry officials said yesterday.
Copper tube is an essential component for air-conditioner manufacturing.
"We will increase sale prices very soon," said an official for Guangdong
Midea Electric.
Midea is China's largest exporter of air conditioners, with overall sales
of about 10 million units last year.
Its customers include Wal-Mart Stores and Best Buy. The official said some
domestic air-conditioner makers had already raised prices by around 10 percent,
which could be enough to offset higher copper prices.
The price of copper, used in wiring and construction, has risen 90 percent
this year, supported by expectations of continued strong demand from China,
where consumption of the metal is forecast to rise 14.5 percent this year.
Copper buyers in China are struggling to cope with high prices as
manufacturing overcapacity prevents them from raising prices.
Gree Electric Appliance Co., the top seller of air conditioners in China,
has not boosted its prices over the past year.
"For now, we have not raised the price. But it is hard to say that we will
not do it in early June," Gree spokesman Huang Fanghua said.
Huang said the firm sold about 10.5 million air conditioners last year. Its
customers include appliance maker Whirlpool Corp.
Some Chinese copper fabricating plants have reduced production due to high
copper prices, said analysts.
"China's copper consumption is not as good as many have expected," Zhang
Heng, an analyst for Jinrui Futures said.
"In January to April this year, the consumption was only about the same
compared to the same time last year," he said.
(Source: Shenzhen Daily/ Agencies)
