Home appliance subsidies are expected to benefit the non-ferrous metals industry

A few days ago, Voice of China’s “Guangzhou-Guangxi News” quoted media reports that the introduction of energy-saving subsidies for home appliances was under discussion, and the policy could be introduced again in the fourth quarter as soon as possible. Industry sources said that if there are relevant policies to promote the dividend, it will be beneficial to the recovery of the non-ferrous metals industry.

According to the media reports, the relevant ministries and some home appliances companies are holding discussions to brewing a new round of home appliance support policies. At present, the discussion on energy-saving subsidies is already in full swing. There are policies that the relevant departments intend to continue before, and some of them are based on the consideration of the phenomenon of defrauding some enterprises, and they tend to terminate the general policy, but instead introduce a relatively strict subsidy system.

It is reported that the home appliance subsidy policy is generally promoted through home appliances to the countryside, trade-in, energy-saving subsidies, etc., which means energy saving and environmental protection, but at the same time it also promotes terminal consumption, and helps the upstream demand growth from the bottom up. From June 1 this year, the implementation of the energy-saving appliance subsidies promotion policy has ceased after the expiration of the time limit. Air-conditioners, flat-panel TVs, washing machines, refrigerators, and water heaters will no longer receive supplements.

According to industry sources, the home appliance subsidy policy is obvious for the market consumption. Taking white goods as an example, Ovid Consulting, a consultancy in the field of professional home appliances, found that from January to May 2013, the cumulative sales volume of the refrigerator market was 17.088 million units, a year-on-year increase of 21.0%; and the accumulated sales volume of the air-conditioning market was 17.924 million units, a year-on-year increase of 14.6%; The cumulative sales volume of the Washing Machine market was 13.42 million units, a year-on-year increase of 19.1%.

The agency also said that China's white goods sales in the first half of the substantial increase in sales, one of the main reasons is the end of the energy-saving benefits of people's policies to stimulate the excitement. Take air conditioning, regardless of fixed speed, variable frequency one or two energy-efficient air conditioners, can enjoy policy subsidies, the minimum 180 yuan / Taiwan, the highest up to 400 yuan / Taiwan, this amount can account for a air-conditioning retail price From one-tenth to one-fifth, the subsidy is undeniable, and the consumption driving force for the home appliance market is naturally quite strong.

In addition, from the perspective of the composition of non-ferrous metal demand, household appliances and motors, real estate, and shipping equipment are among the most downstream industries. Among them, copper consumption can account for one-fifth of the home appliance industry. Non-ferrous metals, led by copper, are greatly affected by the rise and fall of the home appliance market.

Galaxy Futures analyst Che Hongyun had previously expressed concern that the exit of the national energy-saving and benefit-for-money policy since June has led to a period of in-depth adjustment of home appliance companies, which may further reduce the demand for copper.

At present, the subsidy policy on energy saving for new home appliances has not yet been finalized, but Zhang Yanbin, dean of the Ovid Consulting and Research Institute, believes that the subsidy policy will continue, but it may change in details, reflecting more “institutionalized” features.

In any case, relative to the current policy window period, if the new home appliance energy-saving subsidy policy can be successfully launched, it will still boost consumer demand for non-ferrous metals, including copper, and prompt the industry to pick up.