Non-ferrous Metals: Overcapacity Benefits Decline into Major Problems

Recently, the National Development and Reform Commission reported on the operation of the non-ferrous metals industry in the first half of this year that the production and operation of the non-ferrous metals industry in the current period has maintained a steady growth trend, but the price is still oscillating downwards. The overcapacity and economic decline are still the main challenges facing the non-ferrous metals industry in China. problem.

The circular pointed out that China's current non-ferrous metal industry structure is not reasonable, showing "intermediate big, two small", smelting capacity is too large, lack of resource support capabilities, high value-added processing products are in short supply, depending on imports; there are still a number of new violations in the western region The electrolytic aluminum project still has a prominent problem of overcapacity in electrolytic aluminum. At the same time, due to factors such as rising electricity prices and falling prices, the consequences of overcapacity will appear. The electrolytic aluminum industry is facing a serious loss situation; the situation in which bauxite import is controlled by people is further aggravated, and the aluminum industry is further intensified. Development has brought greater impact; disputes in international trade have intensified and exports of non-ferrous metal products have become more difficult.

The National Development and Reform Commission stated that in the second half of the year, the development of non-ferrous metals industry should strictly control the total amount, effectively do a good job in resolving the issue of overcapacity, strengthen the development of new non-ferrous metal materials, expand the application of deep-processed products, increase the development of resources at home and abroad, and improve resource support capabilities; International trade rules, actively respond to trade frictions.

According to the report, in the first half of the year, the output of 10 non-ferrous metals such as copper, aluminum, lead and zinc was 19.47 million tons, an increase of 10% year-on-year. In the same period, the total investment in fixed assets of the non-ferrous metals industry in the country was 284.6 billion yuan, a year-on-year increase of 19.3%.

Among them, investment in processing projects increased by 44.5% year-on-year; investment in aluminum smelting projects slowed down by 8.5% year-on-year. The major non-ferrous metal imports amounted to 48.9 billion U.S. dollars, a year-on-year decrease of 8.7%; the export value was 13.9 billion U.S. dollars, a year-on-year decrease of 3.8%. From the perspective of products, the import volume of smelting products such as copper, aluminum and lead declined, while the imports of copper concentrates, bauxite, laterite nickel ore and other mineral products continued to increase.

As of the end of June, the average prices of copper, aluminum, lead, and zinc in the domestic market were approximately 51,600 yuan, 14,700 yuan, 13,900 yuan, and 14,800 yuan per ton, respectively, down 6%, 9%, 10%, and 3% year-on-year respectively. , Market prices showed a downward trend of low shocks. In addition, from January to May, 8341 non-scale non-ferrous metal industrial enterprises across the country achieved a revenue of 180.03 billion yuan, an increase of 16.6%; a profit of approximately 48.6 billion yuan, a year-on-year decrease of 7.3%, and a sales margin of 2.7%. .