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Sulphur 417 Mar-Apr 2025

19 March 2025

Attempts to rein in smelter overcapacity

CHINA

Attempts to rein in smelter overcapacity

The Chinese government has issued a development plan for the country’s copper smelting industry covering the years 2025-27 which is looking to reduce the level of overcapacity in the sector. New copper smelters must now control sufficient copper mine supply via ownership or equity stakes to cover their production requirements, something few smelters do at present. Chinese smelter output has reached record levels, with treatment charges falling to historically low levels as producers compete for copper concentrate – China imports around 85% of its copper concentrate. Meanwhile more smelter capacity is planned, with around 1 million t/a of new capacity scheduled for 2025. The country aims to boost domestic copper mine resources by 5% to 10% in three years to secure raw material supply, according to the government plan. China will also encourage copper smelters to sign long-term purchase agreements with global miners, boost imports of copper blister and anode, and encourage scrap imports.

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