This year has shown a remarkable performance in China's non-ferrous metals industry, which has been evident through significant year-on-year profit growthA noteworthy image captured in this context is of workers at the Ailen Metal Processing Company in Caoxian, Shandong province, engaged in the precision manufacturing of copper tubes, symbolizing the keen advancements in this sector.

At a recent press conference detailing the economic performance of the non-ferrous metals industry for the third quarter of 2024, Chen Xuesen, the Vice President of the China Nonferrous Metals Industry Association, remarked on the substantial progress made in the industry's high-quality development this yearHe asserted that the overall operation of the industry has shown a promising upward trend with commendable performance indicators, including noteworthy increases in the production and investment levels of major products, alongside a significant improvement in total profits compared to the previous year.

Analyzing the performance during the first three quarters of 2024, it is clear that the production landscape for non-ferrous metals has remained robust

The industrial added value of the non-ferrous metals sector has grown by an impressive 9.7%, significantly outpacing the broader industrial sector by 3.9 percentage pointsThis growth can be dissected further: mining and selection enterprises saw a 6.2% increase in industrial added value, while smelting and processing enterprises achieved a 10.2% riseThe cumulative output of ten major non-ferrous metals reached a staggering 58.74 million tons, reflecting a year-on-year increase of 5.6%.

Several factors contribute to the stable production conditions within the non-ferrous metals industryNotably, the effective macroeconomic policies initiated by the government have played a pivotal roleA series of measures designed to stabilize economic growth have begun to demonstrate their effectiveness, directly supporting the smooth operation of the industryFurthermore, ongoing policy initiatives aimed at phasing out outdated production capacity, promoting green industries, and accelerating international cooperation have fostered a healthier and more sustainable development environment for non-ferrous metals.

Market demand has also acted as a driving force

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Traditional sectors continue to demonstrate consistent growth in their demand for non-ferrous metals, while emerging industries such as new energy vehicles, solar photovoltaics, and energy storage batteries are rapidly expandingIn addition, high-speed rail, aerospace, and new-generation electronic information sectors contribute to a sustained demand for non-ferrous metalsThe increasing digitization and automation within the industry, seen in the establishment of smart mines, smart factories, and intelligent workshops, have significantly enhanced operational efficiencies while reducing production costs and safety risks.

Investment levels in the non-ferrous metals sector are rising sharply, showcasing a growth rate that exceeds the national average for industrial investmentFor the first three quarters, fixed asset investments in the non-ferrous metals industry grew by 24.4% compared to the previous year, surpassing the national industrial investment growth by 12.1 percentage points

Notably, private sector investment in non-ferrous metals surged by 27.5%, higher than the national average for the sectorInvestments in the mining and selection sub-industry increased by a remarkable 68.6%, while smelting and processing industries witnessed a 19.4% rise, both numbers reflecting an expansion compared to earlier in the year.

Li Yusheng, the Director of the Policy Research Office at the China Nonferrous Metals Industry Association, noted the robust growth in private sector investment as indicative of mounting confidence in the non-ferrous metals industry among private capital investorsHe emphasized that this influx of investment, particularly in the fields of new energy metals and new material research, is likely to catalyze technological innovation, industrial upgrading, and green development within the non-ferrous metals sector, subsequently bolstering its competitiveness and sustainable growth potential

Such promising trends not only highlight the bright prospects for the industry but also provide robust support for its future trajectory.

Moreover, businesses in the regulated segment of the non-ferrous metals sector experienced evident profit growthThe first three quarters saw 11,464 large-scale non-ferrous metal enterprises generate revenues totaling 66,040.9 billion Yuan, reflecting a year-on-year growth of 14.7%. This included profit totals of 2,949.7 billion Yuan, which is a notable 42.9% increase compared to the previous yearThe profit margins within these enterprises stood at 4.5%, up by 0.88 percentage points, while asset profit margins reached 6.5%, showing an increase of 1.63 percentage pointsInterestingly, the asset-liability ratio also experienced a decline, settling at 60.4%, down by 0.9 percentage points.

According to Peng Bo, head of the Information Statistics Department at the Association, this robust profit growth among large non-ferrous enterprises stems from a combination of rising prices for commonly used non-ferrous metals, which have provided substantial profit margins for the sector

Specifically, the notable profit gains realized by smelting companies have been a crucial driver behind the overall growth in profitsAluminum smelting companies, in particular, have performed exceptionally well during this price surge, playing a significant role in elevating sector-wide profitsAdditionally, these enterprises have achieved positive results in cost control, with the increases in operational expenses falling beneath the overall revenue growth, subsequently boosting net profit margins.

Furthermore, foreign trade in non-ferrous metals has displayed impressive resilience and enhanced structural optimizationIn total, the import and export trade volume for non-ferrous metals reached 271.06 billion USD, showcasing an annual growth of 8.7%. Exports accounted for 50.83 billion USD, reflecting a 12.0% increase and an acceleration of 8.1 percentage points from the first half of the year, while imports hit 220.24 billion USD, marking a 7.9% year-on-year rise.

Li Yusheng emphasized that the deepening international collaboration within the non-ferrous metals industry is encouraging companies to explore international markets actively