Standing at the historical juncture of the "two 100 years" , the Fifth Plenary Session of the 19th Central Committee of the Communist Party of China (CPC) made an in-depth analysis of the international and domestic situation facing China's development, and considered the "14th five-year plan" and the long-term goals for 2035 as a whole, the system answers the important question of what kind of development and how to realize the development under the new situation, and clearly speeds up the construction of the new development pattern with the domestic big circulation as the main body and the domestic and international double circulation promoting each other. This is a major strategic decision made by the CPC Central Committee with General Secretary Xi Jinping at its core in the light of China's development stage, changes in the environment and conditions, and in light of the situation, which is conducive to grasping important strategic opportunities in the complex international and domestic environment, we will give better play to the advantages of China's super-large economies and shape new advantages in international cooperation and competition.

China is the largest copper producer, consumer and importer in the world. Copper Industry is closely connected with economic construction. Among the 124 existing industries in China, 113 sectors use copper products. The development of copper industry has greatly supported China's industrialization and urbanization. Copper is vital to our lives in an era of urbanisation, better transportation, improved housing, industrial intelligence, critical healthcare, health and living infrastructure, in particular, it plays an important role in smoothing the domestic circulation and promoting the international and domestic double circulation.

1.the global copper industry was significantly affected by the new crown disease

The sudden outbreak of new crown disease has had a significant impact on the global copper industry. Especially in the early stage of the global outbreak of the epidemic had a serious impact on the copper supply chain, March 18-19,2020, Shanghai copper main is a rare consecutive two-day limit, and on March 23 set the lowest price of the year 37,200 yuan per ton. Until the end of March, with the domestic epidemic prevention and control situation basically stable, copper prices only gradually stabilized. Since April, the impact of the outbreak on overseas economies has become apparent, with a more pronounced impact on global copper consumption and mine production. The ICSG estimates that global refined copper consumption fell by about 2 per cent in the first five months of 2020 and global refined copper use outside China fell by about 8 per cent. On the mining front, global copper production fell by about 5.8 per cent in May. Peru was the worst affected, with declines of 33 per cent in April and 41 per cent in May.

According to ICSG on November 23,2020, the latest statistics, the current global copper industry is gradually recovering. In the first eight months, global copper production reached 13,434,500 tonnes, down 0.8 per cent year on year and up 1.5 per cent month on month. Global refined copper output reached 16,075,600 tons, up 1.2 percent year on year and 3.9 percent month on month. On the consumption side, driven by strong copper consumption in China, the global use of refined copper was about 16.369 million tons in the first eight months of 2020, up 1% year-on-year and up 1.2% month-on-month, the global copper industry is recovering or approaching normal levels.

2.The domestic industry is running smoothly and developing with great tenacity

According to the statistics of the Non-ferrous metal, from January to October 2020, the cumulative output of copper-bearing concentrates in China reached 1.379 million tons, up 8.81 percent year-on-year, and that of refined copper reached 8.362 million tons, up 6.07 percent year-on-year The cumulative output of copper processed materials was 16.3375 million tons, up 5.63 percent year-on-year. In addition, according to customs statistics, from January to October 2020, China imported 3.998 million tons of refined copper, up 41.3 percent year-on-year, and 18.072 million tons of copper concentrate, up 0.87 percent year-on-year. In terms of economic benefits, according to the statistics of the Non-ferrous metal, from January to October 2020, the profits of copper industry enterprises in Guishang were 27.34 billion yuan, down 3.6% year on year and 5.0 percentage points less than in January to September. Among them, copper mining and selection enterprises realized profit of 6.66 billion yuan, up 39.4 percent; copper smelting enterprises realized profit of 9.75 billion yuan, down 13.3 percent; copper processing enterprises realized profit of 10.93 billion yuan, down 11.3 percent.

3.China remains the main driving force for the development of the global copper industry

In 2019, global refined copper production capacity reached 31.856 million tons, of which China's refined copper production capacity reached 12.59 million tons per year (express) , accounting for 39.52 percent of the world's total production capacity. From the distribution of smelters, there are nearly 250 smelters in about 46 countries in the world, of which 59 smelters have a capacity of more than 200,000 tons, with a total capacity of 19.768 million tons, accounting for 60% of the total capacity, china has 17 smelters with refining capacity of more than 200,000 tonnes, or 34 per cent. According to the trend of consumption growth, the global consumption of refined copper in 2019 was 23.8749 million tons, of which the consumption of refined copper in China reached 12.3 million tons (express) , accounting for 51.52% of global consumption, and the apparent consumption of refined copper in China reached 12.1789 million tons from January to October 2020, than the same time last year. Preliminary estimates suggest that China's apparent copper consumption rose to 60 per cent of global consumption in the first 10 months of 2020. It can be said that China is still the main driving force for the growth of the global copper industry.

4.China's copper industry is in a critical period of transformation and upgrading

Since the 18th National Congress of the Communist Party of China (CPC) , the scale of China's copper industry has grown rapidly, the industrial structure has been further optimized and upgraded, the ability of scientific and technological innovation has been significantly improved, and the level of environmental protection has been significantly improved.

5. The acquisition of overseas resources has achieved remarkable results, and the industrial layout has been further optimized、

During the "Fifteen" period, through the implementation of foreign resources development projects, relying on key enterprises with international business capabilities, the development mechanism of sharing the interests with the countries where the resources are located was established, in the surrounding countries, Central Africa, Latin America and other resource-rich countries and regions, the formation of a number of overseas copper resources base, comprehensively enhance the control of China's enterprises on global resources. In terms of industrial layout, smelting industry is gathering to the coastal and resource areas. In addition to the five traditional smelting bases of Jiangxi, Anhui, Shandong, Gansu and Yunnan, Fujian and Guangxi have gradually become new important provinces for copper smelting. In the coastal areas and areas with large environmental capacity, smelting enterprises have more competitive advantages, and high-end processing industries in the coastal developed areas to further strengthen the clustering situation.

6. Significant technological advances have been made in some fields, and basic materials have become self-reliant and controllable

Since the beginning of the new century, China's copper industry chain in various links of technology has made significant progress. In Mines, mining operations are developing to high-level and high-level sublevel; on-line monitoring, automatic equipment and intelligent equipment are more widely used; filling technology has developed into a complete system; and ore block caving has become the first choice for large-scale mining of lean ores. In the aspect of smelting, flash smelting and flash blowing technology and self-developed oxygen bottom blowing, oxygen side blowing and continuous blowing technology have gradually become the mainstream. According to preliminary statistics, China's current continuous blowing process capacity of nearly 4 million tons, accounting for about 45% of the total smelting capacity. At the same time, domestic smelting technology is gradually achieving technical export, indicating that China has begun to lead the world copper smelting technology development capacity. In recent years, China has made great achievements in the research and development of copper processing materials and materials, most processing materials and many important materials have achieved self-control.

7.The level of energy conservation and emission reduction has been continuously raised, and the construction of green mines and green factories has made steady progress

Green development is the principle of copper industry development. In 2019,32 copper mines were listed on the National Green Mines List, accounting for 24 percent of the total number of non ferrous metals National Green Mines, and the green mining coverage rate is higher than the national and Non-ferrous metal industry average. The greening coverage of the main copper mine reaches 100% , the industrial waste water is discharged zero, the underground mine waste rock does not leave the pit, the tailings are all used for filling. In the aspect of smelting, with the popularization and application of advanced smelting technology and continuous optimization of technical and economic indexes of copper smelting, the sulfur capture rate and recovery rate of copper smelting enterprises can reach above 98% SO2 emission per unit industry average up to 200mg/m3, far lower than the industry copper, nickel and cobalt emission standards, some enterprises smoke emission is to achieve ultra-low emission standards. In 2020, the comprehensive energy consumption of copper smelting in China has further decreased to 212 kg of standard Coal/ton, reaching the world advanced level. The comprehensive energy consumption of some smelting enterprises is below 150 kg of standard Coal/ton, reaching the top level of copper smelting industry in the world.

At the same time, we should be aware that the development of China's copper industry is still unbalanced and inadequate. This is mainly manifested in the situation of resource security, which is not optimistic, and the degree of dependence on foreign countries is on the rise; the supply structure of upstream and downstream industrial chains is not matched, the import cost of raw materials is increased, and the pricing power and voice power are not strong; environmental pollution incidents occur from time to time, environmental protection has a long way to go; basic materials science research is weak, and the ability to innovate does not meet the requirements of high quality development. Therefore, it is very urgent to speed up the task of industrial transformation and upgrading.

8.Unswervingly adhering to the main line of supply-side structural reform and creating a new pattern for the development of China's copper industry

The world today is going through major changes not seen in a century. A new round of technological and industrial revolution is developing in depth. At the same time, the international environment is becoming more complex, instability and uncertainty are increasing, the epidemic of new crown pneumonia is widespread and far-reaching, economic globalization is encountering counter-current, unilateralism, protectionism and hegemony are on the rise, for the copper industry will be full of challenges and variables, will also have a huge impact on the global copper industry pattern. Copper enterprises should have a deep understanding of the new features and requirements brought about by the changes in the major social contradictions in our country, as well as the new contradictions and challenges brought about by the complex international environment, closely following the new development stage, new development philosophy and new development pattern, with the theme of promoting high-quality development, the main line of deepening supply-side structural reform and the fundamental goal of meeting the People's ever-growing needs for a better life, initiate a new pattern of development of copper industry.

9.Strengthening resources through multiple channels to cement the foundation for industrial development

First, we should continue to increase the exploration of copper and other strategic mineral resources, encourage the community to invest in risk exploration, actively carry out prospecting in the deep part of existing mines, extend the service life of mines, and increase the amount of resources. Second, focusing on the establishment of stable supply channels outside China to develop overseas resources. Speed up the distribution of resources development along the "Belt and Road" . We will carry out substantive geological survey cooperation with the countries along the belt and road, scientifically draw up a blueprint for bilateral cooperation in the field of mining, establish a long-term cooperation mechanism, and build a mutually beneficial and win-win community of interests in the global industrial chain and supply chain. Third, speed up the construction of the recycling system of waste materials, formulate and improve the relevant norms and systems in the field of recycling and recycling, establish systems and standards for the implementation of standard conditions in the recycling and recycling industry, and cultivate key enterprises in the renewable resources industry.

10.Promoting the optimization and upgrading of the copper industrial chain and establishing an industrial system appropriate to the development stage

First, deepen the supply-side structural reform as the main line to further optimize industrial layout. We will strengthen the transformation and upgrading of traditional industries, establish a long-term mechanism for market-and law-based efforts to address overcapacity, and study and revise industrial development plans, an industrial adjustment and guidance catalogue, an industrial transfer catalogue and other industrial policies, strengthen the energy consumption, environment and other indicators, strictly control the disorderly expansion of copper smelting capacity. Second, we will fully promote industrial digitization, promote the integrated development of the new generation of information technology and the copper industry, and advance key projects such as smart mines and digital factories. Third, strengthen the "copper smelting industry standard conditions" leading role to guide production factors to advanced technology, environmental protection good enterprise transfer. Fourth, to guide the coordinated development of upstream and downstream industries, focusing on the use of technological innovation and scale effect to form new competitive advantages and enhance the level of industrial chain. Fifth, foster and develop new industrial clusters, encourage domestic key enterprises to carry out cross-regional and cross-ownership mergers and reorganizations, and gradually form a number of leading enterprises with international influence, competitiveness and innovation.

11.Implementing the strategy of innovation-driven development and strengthening the strategic support of a manufacturing powerhouse

In today's era, scientific and technological innovation has become the core competitiveness of industry, but also determine the quality of development of the decisive factor. Although the copper industry has seen significant improvement in its innovation capacity in recent years, and significant innovation results have been emerging, and some technologies in some areas have entered and are leading the way, it is also necessary to be soberly aware that the basic research on copper processing industry is weak, said materials science, director of the copper processing industry, the research and development of copper-based materials is still performance-oriented, and the innovation ability can not meet the requirements of high-quality development. Therefore, we should strengthen the R & D and Public Relations of key materials in key areas, improve the construction of common basic technology platform, increase the support of basic materials science research, make up the shortage, and promote the self-control of high-end copper-based materials.

12.Speeding up the cultivation and improvement of a domestic demand system and promoting the formation of a strong domestic copper market

Although the development stage of China has changed, the quality and level of copper consumption are still unbalanced and inadequate. For example, in the popularization of green copper alloy, there is a big gap between the construction copper pipe and the medical copper pipe with the western countries (the application of copper pipe in the construction field is 7% ~ 9% in the developed countries and only 3% in China) . Therefore, we should actively implement the strategy of expanding domestic demand, improve the quality of supply, activate the consumption potential, strengthen the formulation of relevant green copper alloy standards and coordination of standards in various departments, and further smooth the domestic circulation.

13.Speeding up green development and enhancing the ability of industry to coexist harmoniously with nature

We will establish and improve a standardized system of economical and intensive mining techniques and improve mandatory standards for green prospecting and green mine construction. We will accelerate the establishment and improvement of a resource pricing mechanism that fully reflects market supply and demand, resource scarcity, ecological value and environmental damage costs. To speed up the green transformation, smelting enterprises are encouraged to adopt continuous blowing technology to transform the traditional converter, and to upgrade the level of unstructured emissions from the traditional blowing process. 

Source: Non-ferrous Metal, author: Deputy Director of the heavy metals department of the Non-ferrous metal and secretary general of the Copper Branch, editor in chief: Duan Shaopu

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