China's renewable non-ferrous metals industry is weak in competitiveness

**Abstract** Recently, the China Nonferrous Metals Industry Association's Recycling Metals Branch released a report on the performance of the recycled non-ferrous metals sector during the first three quarters of 2013. Wang Xiaoyang, deputy director of the Department of Energy Conservation and Comprehensive Utilization under the Ministry of Industry and Information Technology, as well as vice president of the China Nonferrous Metals Industry Association, Shang Fushan, president of the Recycling Metals Branch, Wang Jiwei, vice president and secretary general of the branch, and Li Shilong, vice president, provided an in-depth briefing on the industry’s development. In the new century, China’s renewable non-ferrous metal industry has experienced rapid growth. By 2012, the output of mainly recycled non-ferrous metals exceeded 10 million tons, becoming a vital component of the country’s non-ferrous metal sector. However, this year has brought significant challenges, with a complex domestic and international economic environment. Despite these difficulties, the industry has remained relatively stable, supported by government policies and the efforts of local authorities. Wang Jiwei highlighted that, despite the downward pressure from the global and domestic economy, the industry maintained a generally stable operation in the first three quarters. However, enterprise profitability declined sharply, and investment growth in smelting and processing projects slowed down. Trade volumes for imports and exports also dropped, while metal prices remained significantly lower than the same period last year, affecting the entire sector. According to preliminary data, the total output of recycled non-ferrous metals (copper, aluminum, lead, and zinc) in the first three quarters of 2013 reached 7.22 million tons, a 5.1% decrease compared to the previous year. Recycled copper output was approximately 1.8 million tons, down 12.2%, while recycled aluminum reached 3.5 million tons, a 3% drop. Recycled lead increased slightly by 4.8%, but recycled zinc fell by 8.9%. From January to August 2013, China imported 4.394 million tons of copper, aluminum, and zinc-containing waste, valued at $11.41 billion, representing a 9% and 8.5% decline, respectively. Copper scrap imports dropped by 9.7%, reaching 2.79 million tons, while aluminum scrap imports decreased by 7.6%. In contrast, zinc scrap imports rose by 9.1%. Copper prices continued to fall throughout the year, dropping from 60,270 yuan per ton at the start of the year to 52,700 yuan by the end of September—a decrease of 12.6%. The average price of 1# scrap copper was 49,460 yuan per ton, and 2# scrap copper averaged 45,800 yuan. Scrap aluminum prices fell by 8% year-on-year, averaging 12,509 yuan per ton. Fixed asset investment in the recycled non-ferrous metals industry declined significantly in the first three quarters. This was due to slower development of recycling parks, fewer enterprises entering them, and reduced profitability. Additionally, the number of newly built facilities decreased, and their scale shrank. Two major policies impacted the industry this year. First, the nationwide "Hedgerow" customs campaign led to delays and higher costs for some companies, particularly those with tight capital chains. Second, new regulations on lead and aluminum industries raised entry barriers and improved standards, promoting technological upgrades and curbing disorderly growth. Overall, the industry faced weak demand, slight output declines, and idle production capacity. Profit margins shrank, and more companies reported losses. Although some enterprises invested in technology upgrades, the sector remains vulnerable and lacks strong competitiveness.

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