China Targets Copper Smelting 'Involution' Crisis

China is considering stricter regulations on expanding copper smelting capacity due to persistently low processing fees, which have impacted smelting profits. This issue arises from 'involution-style' competition. Chen Xuesen from the China Nonferrous Metals Industry Association emphasized the need to control capacity expansion as a measure to confront this problem.

China is taking steps to address the ongoing issue of low processing fees in the copper smelting industry, which have significantly eroded profits. According to a state media report on Thursday, efforts are underway to strengthen regulatory measures to control the expansion of smelting capacity.

Chen Xuesen, vice chairman of the China Nonferrous Metals Industry Association, highlighted the intense 'involution-style' competition within the industry as a central problem during a meeting on Wednesday. This type of competition has led to an excessive expansion in smelting capacity, outpacing the supply of mined material and causing a scarcity of concentrate.

Participants from major copper smelters, including Jinchuan Group and Jiangxi Copper, convened to discuss solutions. The association has proposed specific measures to curtail the proliferation of smelting operations to mitigate the detrimental effects on both the industry and the national economy.

(With inputs from agencies.)