Analysis of China's Copper Metal Materials Industry

1. Overview of Copper Based Materials

Copper is a transition element with the chemical symbol Cu and an atomic number of 29. Pure copper is a soft metal with a red orange color and metallic luster when first cut, and a purple red color in its elemental form. Good ductility, high thermal and electrical conductivity, therefore it is the most commonly used material in cables, electrical and electronic components, and can also be used as a building material to form various alloys.

According to the "In depth Research and Investment Trend Analysis Report on the Development of China's Copper Based Materials Industry (2024-2031)" released by Guanyan Report Network, copper based materials are alloys or composite materials formed by adding other functional elements or substances to copper or copper alloys as the matrix. With their excellent electrical and thermal conductivity, good mechanical properties, corrosion resistance, and high ductility, they have become important bulk basic raw materials related to modern industrial development and national economy and people's livelihood. In terms of the industrial chain, the main finished product in the upstream mining stage of the copper based materials industry is copper concentrate, the main finished product in the midstream smelting stage is refined copper, and the main finished product in the downstream processing stage is copper material.

2. The supply side of copper ore, the main raw material in China's copper based materials industry, continues to tighten

Most of China's copper mine demand relies on imports to meet, so the degree of external dependence is high, and the situation of resource scarcity still needs to be improved. According to data, China's copper mine production in 2023 will be 1.7 million tons, accounting for 7.7% of global copper mine production, with copper mine inventories of approximately 6.69 million tons. At the same time, the ore grade in China's mines is relatively low compared to the average grade level of mainstream mines in the world, and the overall ore grade is showing a downward trend. As of 2023, the grade of domestic copper mines has dropped to around 0.56, further exacerbating the shortage, difficulty, and cost of copper mining in China.

3. The current situation of China's copper based materials industry - the production capacity of refined copper is steadily increasing, with both output and consumption maintaining an upward trend

The main finished product in the midstream smelting process of the copper based materials industry is refined copper. In terms of production technology, coarse copper (containing 99% copper) is pre made into thick plates as anodes, pure copper is made into thin sheets as cathodes, and a mixture of sulfuric acid and copper sulfate is used as the electrolyte. After being powered on, copper dissolves from the anode into copper ions (Cu) and moves towards the cathode, where it obtains electrons and precipitates pure copper (also known as electrolytic copper). Impurities in crude copper, such as iron and zinc, which are more reactive than copper, dissolve together with copper to form ions (Zn and Fe). Impurities that are less reactive than copper, such as gold and silver, deposit at the bottom of the electrolytic cell. The resulting copper plate is called "electrolytic copper" (also known as refined copper) and has extremely high quality. In recent years, China's refined copper production capacity has steadily increased. According to data, in 2023, China's refined copper production capacity will reach 12.85 million tons, a year-on-year increase of 6.18%.

4. The copper based materials industry in China is mainly used in the field of power and related equipment

The downstream demand for copper based materials is mainly concentrated in the power and related equipment industry. According to the data, the downstream industries of copper based materials account for 22% of the demand in the construction industry, 20% in the power industry, 15% in the electronic communication industry, 13% in the transportation industry, and 11% in the home appliance industry. From the perspective of sub industry demand, the main uses are power equipment, power cables and equipment, general appliances, household air conditioning, electrical vehicles, transformers and motors, etc.

At the same time, both the production and consumption of refined copper metal in China have maintained positive growth. According to data, in 2023, China's refined copper metal production will be 11.423 million tons, a year-on-year increase of 11.13%, and the annual consumption will be 14.54 million tons, a year-on-year increase of 5.29%.

Policy support: The government has increased investment in new energy, new infrastructure and other fields, providing more market opportunities and development space for the copper processing industry

In summary, the copper recycling and reprocessing industry will continue to maintain steady growth under the promotion of technological progress and policy support, especially in the rapid development of new energy, new infrastructure and other fields, which will bring new development opportunities.

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