In 2015, China’s copper-processing industry exhibited the following key characteristics: capacity and output growth remained robust. That year, the country’s copper‑product output reached 14.987 million tonnes, up 25.2% year on year—a 14.42‑percentage‑point increase over the previous year. The provinces and regions with the strongest growth were Shandong, Guangdong, Jiangsu, and Jiangxi, with Jiangxi surging to become the top producer of copper products. From a product‑consumption perspective, the latest data indicate that the largest end‑use market for copper‑processed materials in China is copper wire and cable for the power industry, accounting for roughly 50% of total copper‑product consumption.

　　Fixed‑asset investment remains poorly controlled. In 2015, fixed‑asset investment in China’s nonferrous metal processing projects totaled RMB 330.341 billion, accounting for 49.99% of the total investment in the nonferrous metals industry and continuing to be a major driver of investment activity. Among these, copper rolling projects numbered 553, with completed investment reaching RMB 52.567 billion—an increase of 35.44% over the previous year—representing 15.91% of the total fixed‑asset investment in nonferrous metal alloy manufacturing and rolling operations.

　　During the 12th Five-Year Plan period, China’s cumulative fixed-asset investment in nonferrous metal alloy manufacturing and rolling processing reached RMB 370.15 billion, with an average annual growth rate of 44%. In the first three years of the plan, total investment amounted to RMB 737.29 billion—roughly twice the level for the entire five-year period—indicating that, under the current circumstances, controls on the expansion of nonferrous metal production capacity have been inadequate. Meanwhile, analysis of the top ten provinces and autonomous regions by investment disbursement reveals that production capacity is shifting toward the central and western regions, effectively addressing regional imbalances.

　　Import and export trade has shown little improvement. According to statistics, in 2015 China imported 649,000 tonnes of copper‑processed products, down 3% year on year, while exports totaled 489,000 tonnes, a decrease of 0.8% compared with the previous year. These figures indicate that demand for nonferrous metals remains weak in advanced economies, and the recovery of China’s nonferrous metal export sector is proceeding slowly. In formulating short‑term plans, annual programs, and investment strategies, it is prudent not to set overly high expectations for the international market; domestic demand should continue to be the primary driver. Meanwhile, the efforts of China’s nonferrous metal processing industry to advance technology and restructure its sector are beginning to yield results, gradually reducing reliance on high‑precision processed products—such as specialty alloys, ultra‑fine sheet and strip, and rolled copper foil—from developed countries.

　　Inefficient operations remain the dominant feature of the copper and aluminum processing industries. According to the latest data, processing firms account for a substantial share of total profits in the nonferrous metals sector, yet their profit margin on main business revenue stands at just 4%.

　　From the perspective of the nonferrous metals industry as a whole, weak domestic and international demand, coupled with low‑level price volatility across most product categories and rigid increases in production costs, has left enterprises broadly struggling. The share of firms reporting losses has been steadily rising, and profits from core operations have posted negative growth. However, profit performance varies: state‑owned enterprises have seen declines, while private firms have recorded growth; large and medium‑sized enterprises have experienced contractions, whereas small enterprises have expanded; mining and smelting firms have reported lower earnings, while processing companies have posted gains. In the processing sector, although statistical data indicate an increase in corporate profits, the rate of growth has lagged behind both output expansion and the rise in main‑business revenue, meaning that the profit margin on main business revenue has, in fact, declined.

　　Industry-wide efforts are key.

　　Fluctuating raw-material prices, intensifying competition from product homogenization, declining copper‑processing fees, and a sluggish recovery in both domestic and global economic conditions have all contributed to persistent market uncertainty, leaving many copper‑processing firms mired in an era of razor‑thin profit margins.

　　“At present, the prospects for China’s copper-processing industry hinge on improvements in the external environment and on the industry’s own efforts—of which the latter is paramount and within our control,” noted Ma Shiguang, Secretary-General of the China Nonferrous Metals Processing Industry Association, at the conference.

　　From the perspective of the external environment, investment is expected to be brought under effective control. With no major breakthroughs in copper applications and relatively stable demand across key market segments, as the projects initiated during the 12th Five-Year Plan are progressively completed and commissioned, investment activity in the copper-processing sector should gradually return to a more rational trajectory. At the same time, investment in products of ordinary precision should be curbed, thereby gradually slowing the pace of capacity expansion.

　　China accounts for 45% of global copper consumption and relies on the international market for as much as 75% of its supply, which has driven up international copper prices. Meanwhile, international copper prices and their volatility are largely controlled by a handful of global copper oligopolists and investment banks, leaving China with little bargaining power and no say in pricing. As end‑users, copper processors are at an even greater disadvantage in negotiations, with virtually no influence and little choice but to accept prevailing terms. The persistent high price levels and their volatility have heightened operational risks, increased financing costs, squeezed profit margins, and severely undermined the viability of copper‑processing enterprises.

　　On the industry’s own initiative, it is essential to enhance the awareness of upgrading and modernizing. Raising technological standards and reducing manufacturing costs have become widely recognized priorities, and companies must strive for continuous improvement in their technical management. In technologically advanced countries such as those in Europe, the United States, and Japan, this principle is given high priority: all production processes are subject to standardized management, and through training, standardized procedures and operating practices are ingrained as habitual behaviors among workers, thereby ensuring process quality by fostering greater awareness.

　　Unlock the full potential for cost reduction. This involves two key areas: first, integrating product‑cost reduction into the scope of research and development; and second, placing a high priority on resource recycling and the development of the recycling industry. China’s secondary nonferrous metals sector is steadily becoming more standardized and scaled. At present, the national average recycling rates for copper, aluminum, and lead have reached 29%, which, while still lagging behind those of developed countries, represents an increase of nearly six percentage points compared with the end of the 12th Five-Year Plan period. Building up the recycling industry not only helps alleviate resource constraints but also delivers significant benefits in lowering processing costs and achieving energy savings and emission reductions. Enterprises must address the various challenges facing the recycling sector with due diligence.