China's copper processing industry is facing such problems as excessive expansion and over-concentrated investment, according to data released by China Nonferrous Metals Industry Association (CNIA).

 

The 2008 China International Copper Conference was held by CNIA on October 26-28 in this capital of East China's Jiangxi province.

 

According to Duan Shaofu, director of CNIA's Copper Department, China's fixed asset investment in copper processing products has been increasing rapidly in recent years. The fixed asset investment in calendering of common nonferrous metals reached 38.3 billion yuan in 2007, twice as much as in 2004. From January to August, the fixed asset investment hit 30.9 billion yuan, up 61 percent on year.

 

The investment also reveals problems of over-concentration, leading to fast capacity and output growth of high precision copper plates and strips and fine copper tubes. In the next two years, the production capacity of high precision copper plates and strips would reach 800,000 tons, and that of fine copper tubes 400,000 tons, CNIA predicated.

 

Duan said fast capacity growth of certain products would result in oversupply in the domestic market and intensify competition inside the industry. At the same time, along with the intensified competition and over-concentration, the industrial distribution of China's copper processing industry could turn out to be more reasonable in the next five to ten years.

 

The production of copper processing products is expected to be concentrated in such economic power houses as the Yangtze River Delta, the Pearl River Delta and the Bohai Rim Economic Circle, which are also China's processing and manufacturing centers and major copper consuming areas.

 

Editor:    Ivy

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