The latest data released by the National Bureau of Statistics show that in the first half of this year, the main business revenue of nonferrous metal enterprises above a designated size... 25074.2 100 million yuan, up year-on-year 2.8% , the increase rate is higher than 1-5 Monthly increase 0.6 percentage points; achieve profit 747.1 100 million yuan, up year-on-year 14.7% , the increase rate is higher than 1-5 Monthly expansion 4.8 percentage points. Compared to last year’s dismal business performance, the nonferrous metals industry has seen a marked improvement in profitability this year, with profits turning from decline to growth and the supply-demand structure showing initial signs of improvement.

　　As for the underlying reasons, Wang Huajun, Deputy Secretary-General of the China Nonferrous Metals Industry Association, believes that this trend is not only driven by the rebound in real estate investment and the growth in infrastructure construction, but also closely linked to the industry’s earlier efforts to reduce excess capacity, phase out some inefficient production capacities, and the relatively low base figure from the same period last year. In particular, the recovery in nonferrous metal prices has had a significant impact on improving both total corporate profits and sales revenue.

　　According to the China National Economic Research Institute’s report on the prosperity index for the nonferrous metals industry, in the second quarter, prices of major metal varieties showed a month-on-month rebound, with copper and aluminum prices rising month-on-month by [specific percentages]. 0.4% 、 12.1% This has enabled profit growth to rebound, driving overall industry profit growth.

　　However, the nonferrous metals industry exhibits very distinct differentiation. Looking at various production stages within the industry in the first half of the year, the profit growth of smelting enterprises has clearly played a significant role in boosting the overall industry’s profitability. Among them, independent mining enterprises achieved main business revenues... 1556.3 100 million yuan, down year-on-year 2.4% achieve profit 85.5 100 million yuan, down year-on-year 14.1% ; Main business revenue of smelting enterprises 10335.8 100 million yuan, up year-on-year 1.2% achieve profit 153.7 100 million yuan, up year-on-year 63.1% ; Processing enterprises achieve revenue from their principal business activities. 13182.1 100 million yuan, up year-on-year 4.7% achieve profit 507.9 100 million yuan, up year-on-year 11%。

　　 “ For a long time, downstream processing enterprises in the nonferrous metals industry have been profitable. ” Guo Chunqiao, an analyst with the Comprehensive Research Division of Beijing Antaike Information Development Co., Ltd., explained that last year, prices of nonferrous metals continued to decline. As a result, processing companies saw lower prices for purchasing metal ingots, leading to a corresponding drop in production costs. Consequently, prices of metal products remained relatively stable compared to the previous two years. At the same time, processing enterprises differ from mining and smelting enterprises. “ Heavy assets ” Fixed investment is low, and there’s considerable room to adjust prices of metal products; therefore, it’s no surprise that processing companies are seeing profit growth.

　　It is worth noting that the pronounced differentiation within the industry is also a result of adjustments in supply and demand. In recent years, in order to address overcapacity, the nonferrous metals industry has, on the one hand, adopted measures such as flexible production and output restrictions, and on the other hand, has tapped deeply into the consumption potential of primary aluminum and expanded high-end demand. According to Wen Xunjun, vice president of the China Nonferrous Metals Industry Association, since... 2013 Since last year, the China Nonferrous Metals Industry Association has consistently regarded expanding consumption as the fundamental approach to resolving the overcapacity in electrolytic aluminum production, and has successively focused on transportation vehicles. “ Replace steel with aluminum ” Power industry “ Use aluminum to replace copper ” Building formwork “ Aluminum-wood joint ” Extensive promotional efforts have been made in various areas, laying a solid foundation for expanding the application of aluminum in sectors such as transportation, construction, and power generation.

　　 “ In the first half of the year, the nonferrous metals industry showed initial signs of recovery, largely due to the current relatively balanced supply-demand situation. To maintain this balance, it’s crucial to avoid the resumption of production at flexible capacity facilities and the commissioning of newly built capacity, while also vigorously promoting the development of sophisticated processing and deepening of value-added services. ” Vice President Wen Xianjun stated that the biggest concern right now is that, as prices of nonferrous metals gradually return to more normal levels, some regions may show signs of new capacity being built or newly commissioned. This could render the industry’s earlier self-regulatory efforts to reduce and limit production nothing but empty talk.

　　Regarding how to achieve sustained and healthy development in the nonferrous metals industry, Vice President Wen Xijun believes that, on the one hand, it is essential to establish a comprehensive market access mechanism and an environmental protection system, clarify enterprise standards for the nonferrous metals industry, accelerate the phasing out of outdated production capacity, promote optimization of the industrial structure, and prevent low-level duplicate construction and blind expansion. On the other hand, we must continue to strengthen technological innovation, vigorously develop sophisticated processing and deep processing, further increase the consumption of nonferrous metal materials in sectors such as aerospace, automotive, construction, electronics, and packaging, and ensure a balanced supply-demand relationship.

　　Regarding the outlook for the non-ferrous metals industry in the second half of the year, Wang Huajun stated that in the second half, investment in real estate and infrastructure construction will drive an increase in demand for non-ferrous metals. However, given that the issue of overcapacity on the supply side is unlikely to be quickly alleviated in the short term, non-ferrous metal prices will continue to face significant downward pressure. Preliminary assessments suggest that the growth rate of non-ferrous metals production throughout the year will remain moderate but gradually stabilize. 10 Production of non-ferrous metals is expected to see a modest increase, but the recovery in prices is unlikely to be sustained, cost reductions remain challenging, enterprises face difficulties in securing financing, and their financial burdens remain heavy. As a result, the pressure on enterprises to continue improving their economic performance remains significant, and the industry has yet to establish a sustained trend of recovery.