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Status Quo of Copper Industry in China

Various shapes made of pure copper or copper alloys, including rods, wires, plates, strips, strips, tubes, foils, etc., are collectively referred to as copper materials. The processing methods of copper materials include rolling, extrusion and drawing. The processing methods of plates and strips in copper materials are hot-rolled and cold-rolled; while strips and foils are processed by cold-rolling; Pipes and bars are divided into extruded and drawn products; wires are drawn. Copper materials can generally be divided into copper plates, copper rods, copper tubes, copper strips, copper wires, and copper bars.

1. Industry chain analysis

1). Industrial chain
The upstream of the copper industry is mainly the mining, selection and smelting of copper ore; the midstream is the production and supply of copper; the downstream is mainly used in electric power, construction, household appliances, transportation, electronic appliances and other industries.

2). Upstream analysis
Electrolytic copper is one of the main sources of raw materials for China’s copper foil industry. With the continuous development and progress of China’s scientific and technological level, the electrolytic copper manufacturing technology has become more and more mature, and the output of electrolytic copper has also increased steadily, providing stable raw material support for the development of the copper industry.

3). Downstream analysis
The power industry is one of the main demand areas for copper materials. Copper materials are mainly used in the production of transformers, wires, and cables for power transmission in the power industry. With the continuous development of China’s economy, the power consumption of the whole society is increasing, and its demand for power transmission equipment such as wires and cables is also increasing. The growth of demand has promoted the development of China’s copper industry.

2. Industry status

1). Output
After years of development, China’s copper industry has gradually matured, and the industry has gradually entered a stable stage. During the period from 2016 to 2018, due to the adjustment of the industrial structure of China’s copper industry and the steady progress of the process of de-capacity, the output of China’s copper products gradually declined. As the adjustment of the industrial structure draws to a close, coupled with the stimulation of market demand, China’s copper production will increase steadily during 2019-2021, but the overall magnitude is not large.
From the perspective of the production breakdown structure, China’s copper production in 2020 will be 20.455 million tons, of which the output of wire rods accounts for the highest proportion, reaching 47.9%, followed by copper tubes and copper rods, accounting for 10.2% and 9.8% of the output respectively.

2). Export situation
In terms of exports, in 2021, the export volume of unwrought copper and copper products in China will be 932,000 tons, a year-on-year increase of 25.3%; the export value will be US$9.36 billion, a year-on-year increase of 72.1%.

Post time: Aug-23-2022