China is currently the world’s largest copper consumer, and forecast to remain so for many years to come. Over the past five years, China has witnessed a significant, and largely unregulated, increase in smelting capacity, with an average annual new capacity addition of around 1 million tonnes per year.
In contrast, China suffers from a chronic shortage of mineable copper reserves, and development of the domestic copper industry has been very slow. Output from domestic copper ores falls well short of satisfying demand from domestic copper smelters, which has led to a growing reliance on imported concentrates.
Applying its proven industry assessment methodology, the CM Group has conducted a ground-up assessment of China’s copper mining industry. The output from this assessment sheds new light on China’s domestic copper producers and their ability to supply domestic concentrate to existing smelters.
How will the emergence of potential new Chinese producers impact current imports? What is the cost structure of China’s emerging domestic copper industry and how might it change over the medium to long-term?
The CM Group adopts both a top-down and bottom-up to assess the industry. Field studies are one of many tools used to identify and rank producers, compare producing regions and assess findings relative to other research. The CM Group has proven that its dedicated teams are able to respond quickly to the clients’ needs and deliver high quality insights and advice in a timely and professional manner. We are experienced and well equipped to conduct a wide variety of analyses relating to China’s copper industry.