China’s copper industry faces profit squeeze, explores recycling, increasing use of aluminum

China’s copper industry is grappling with tight copper concentrate supplies, which have squeezed smelter profits and increased reliance on byproducts.

Speaking at Asia Copper Week in Shanghai, Ge Honglin, Chairman of the China Nonferrous Metals Industry Association, recommended increasing the use of aluminium and recycled copper to address these challenges.

This update was included in a daily market report from Access Bank.

“With treatment and refining charges expected to hit a 15-year low in 2025, recycled copper could lessen China’s reliance on foreign resources, which currently exceeds 70 percent.

Recycled copper volumes are projected to grow from 2.5 million metric tonnes in 2024 to 3.5 million by 2030,” the report stated.

Ge also encouraged Chinese companies to secure resources from stable regions and proposed mergers within the copper refining industry to strengthen purchasing power.

Aluminum, a cheaper alternative to copper, could be used as a substitute in various applications.

While China imports 60 percent of the raw materials needed to produce aluminium, its companies have already acquired significant overseas bauxite reserves, essential for alumina production, which is key to aluminium manufacturing.

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