UTC+8 ( BJT)

China’s Aug air-con output plummets 17% on month

Among the four major electrical home appliances manufacturing in China, that of air-conditioner declined the most by 17.2% on month to 15.3 million units for August, though the volume was still 0.5% higher on year, according to the latest data from China’s National Bureau of Statistics (NBS), though market sources remained optimistic on higher production for the last quarter of 2020.
“The Chinese home appliance manufacturers took two weeks off in August as usual, as the high temperature is simply unbearable for normal operations,” a Beijing-based market sources said, and “July-August are usually the low production but high consumption months, but this year, the demand had not been very robust, just about the same as a year ago,” he added.

The longer wet season this year, to some degree, had restrained the actual demand for home appliances such as the air-conditioners, he elaborated.

Over January-August, China’s air-con production fell the steepest by 12.2% on year to 138.9 million units, according to the NBS data, though there is still room for higher output and sales of home appliances including air-conditioner for the remainder of 2020.

“China’s new real estate sales and newly-completed housing projects showed signs of the continuing recovery in August, and the home appliances sales will probably benefit from this, and the more capitals injected in the market will also boost residents’ interest in buying new housing properties,” the Beijing source added.

Over January-August, the property sales in size including commercial and residential housing recorded 984.9 million square meters, or down 3.3% on year, but the pace of decline slowed down by 2.5 percentage points from that over the first seven months, as reported.

Television was with the largest production of the four, surpassing air-con in August at 19.3 million units partially on the support of the high exports, and the August result took its total output over January-August to 120.2 million units, the only one scoring a positive 4.9% on-year gain among the four, according to the NBS data.

Over January-July, China’s LCD TV exports rose by 1.4% on year to about 53 million units, according to the latest available data from the country’s General Administration of Customs. 

China’s electrical home appliance production up to August 

Product

Aug

(million units)

YoY (%)

Jan-Aug (million units)

YoY (%)

Televisions

19.3

20.6

120.2

4.9

Air-conditioners

15.3

0.5

138.9

-12.2

Refrigerators

9.1

28.5

55.4

-1.9

Washing machines

7.5

9.3

47.3

-1.4

Source: NBS

Written by Anna Wu, wub@mysteel.com
Edited by Hongmei Li, li.hongmei@mysteel.com



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