The production of multi-split air conditioner sprints to meet the peak season in the coming months. The whole industry chain, from raw material market to whole machine factory, has all busily prepared for it. Although the growing rate slows a bit in April, the multi-split air conditioner market climbs the peak again in May after a series of adjustment. We will analyze the upstream channel from a deeper perspective.
High inventory is not common in central air-conditioning market. The sufficient supply of the upstream supplier guarantees that the market works well before the peak season comes.
Faced with the overwhelming order from whole machine market, upstream market has been busily ready for it from the beginning of this year. The core parts such as compressor and heat exchanger maintain their high growth rate besides related components and raw material market. Taking the copper pipe as an example, according to the domestic largest copper pipe supplier such as Jinlong Copper Pipe Group, the production cycle of copper pipe is 3 to 5 days by routine. In order to secure the normal operation of the factory, the stock of copper pipe generally meets the requirements of 3 to 5 days cyclic inventory. However, with the demand of whole machine company continues to increase after entering 2017, the inventory nearly remains zero when peak season comes.
Besides copper pipe, refrigerant is also an important part of fluorine machine system, and the capacity of it is closely related to the operation of the whole supply chain. Since the beginning of 2017, AHF has dramatically risen first. And then due to the short supply of raw material, there has been a huge rise to cover the inventory. Finally, the whole refrigerant market has been out of stock, and the price rises sharply and quickly. Influenced by environmental factors, many small hydrochloric acid manufacturers in northern areas have been shut down, and the competition in the industry weakens. However, low operating rate caused by bad sales of hydrochloric acid has been improved. Meanwhile, the work loads of manufacturers has increased a little bit, out of stock situation has been relieved and short supply of the market has been receded relatively.
We can get a thorough understanding that the market is quiet hot from the current supply of the upstream channel. Correspondingly, multi-split air conditioner market climbs the peak in May. According to ChinaIOL, the sales of multi-split air conditioner industry are 4,489,000,000 yuan, growing by 31.06 percent year on year. Among them, the domestic sales are 4,229,000,000 yuan, growing by 32.57 percent year on year. The export of multi-split air conditioner continues to its previous high growing trend, and the amount of export is 261,000,000 yuan, growing by 10.61 percent year on year.
The whole performance of multi-split air conditioner market in May is beyond the expected, which is also remarkable in regional market. Taking the well-developed Jiangsu market as an example, more and more central air conditioning companies enlarged their input power. In 2017, Toshiba began to deep plough mature market in Jiangsu and refine second and third level market. Many sample projects started in succession, which enlarges the brand influence. Mitsubishi Heavy Industries, which is very powerful in the strategic deployment of physical store, opened many “K Standard” stores in places like Wuxi and Suzhou in May, paving the way for the further cooperation with “5UPLUS” platform. In return, “5UPLUS” HVAC personalized customization platform injects newer and stronger vitality to its original terminal, which makes channel construction penetrate third and fourth tier city constantly.
In conclusion, depending on its powerful performance from January to May, there is no doubt that multi-split air conditioner has become the most vigorous niche product of central air conditioning industry. The strong market demand, on the one hand, drives the sales volume of multi-split air conditioner to grow rapidly, on the other hand, leads the upstream component and raw material to grow. The market data of June is coming soon. Upon the coming peak season, ChinaIOL will track the market change, bringing newest information for every reader.