Events in China's copper processing industry in 2020
2020 is an extraordinary year in the history of New China. In the face of the severe and complex international situation and the severe impact of the new crown pneumonia epidemic, the Party Central Committee with Comrade Xi Jinping at its core maintained strategic determination, carefully planned, and acted decisively, united and led the people of the whole country to work hard, and delivered a commitment to the satisfaction of the people and the world. An eye-catching answer that can go down in history. The copper processing industry has also made steady progress, the output of copper products has grown steadily, and the quality of development has been further improved. China Nonferrous Metals Processing Industry Association (hereinafter referred to as "Processing Association") has sorted out major events in China's copper processing industry in 2020 for readers.
1. The output of copper products achieved positive growth throughout the year, and foreign trade maintained a net export
The copper processing industry was greatly affected by the epidemic from February to March, but with the rapid recovery of China's economy, copper processing enterprises overcame difficulties and actively organized the resumption of work and production. According to the statistics of the China Nonferrous Metals Industry Association Express, the annual output of copper processing materials increased by 2.72% year-on-year (Note: the accurate data processing association will be announced in the near future).
In 2020, China's copper materials (excluding copper powder, due to abnormal copper powder import data) imported 525,000 tons, an increase of 8.3% year-on-year, and exported 538,000 tons, an increase of 3.3% year-on-year, with a net export of 13,000 tons, continuing to maintain a net export. From the perspective of imported varieties, the varieties that urgently need to improve the quality are copper strips, copper foils, copper wires (wires), copper strips imported 115,000 tons, a year-on-year increase of 0.3%, copper foil (excluding CCL) imported 135,000 tons, An increase of 11.8% year-on-year, and the import of copper wire (wire) was 108,000 tons, an increase of 9.9% year-on-year. The highlights of exports are: the export of copper bars and profiles was 67,000 tons, an increase of 20.1% year-on-year, the export of copper sheets and strips was 48,900 tons, an increase of 22.3% year-on-year, and the export of copper foil (excluding CCL) was 41,700 tons, an increase of 31.0% year-on-year. The increase in exports of copper strips and copper foils, two weak products in my country, indicates that my country's copper processing materials innovation capability is gradually improving.
2. Copper-iron alloy was born, becoming one of the key promotion varieties for the Ministry of Industry and Information Technology to expand the consumption of copper-based high-end materials in 2020
Copper-iron alloys (iron content of 5~50%) are copper alloys that lead the world in R&D and manufacturing in the field of copper-based materials in my country. application. At present, the product has been tested in Japan and South Korea, but it has not been applied in my country due to insufficient attention in the downstream electronic information field. In order to promote this high-performance alloy, the first "Copper-Ferro Alloy Processing and Forming Technology and Innovative Application Seminar" sponsored by the Machining Association and co-organized by Shaanxi Sirui and Central South University was jointly organized by Jintian Copper, Central South University and Shaanxi Sirui The 2nd "Copper-Ferro Alloy New Materials Promotion and Application Seminar" was held on April 25 in Xi'an, Shaanxi and on December 26 in Ningbo, Zhejiang. The R&D and promotion of copper-ferroalloy has created a new mode of cooperation between industry, university, research and government. CNMC Aobot, China Copper Huazhong Copper, Dalian University of Technology, Jinxi Chunlei, Hengtong Optoelectronics and other enterprises and universities have also actively joined in. The application of copper-ferroalloy in China is expected to be as soon as possible. Expand.
On April 24, 2020, the Raw Materials Industry Department of the Ministry of Industry and Information Technology launched the project of "Expanding Nonferrous Metals High-end Materials Consumption Strategy Research", and the Processing Association is specifically responsible for the "expansion of copper-based high-end materials consumption strategy research" project report writing, industry research, product promotion and other work . The project includes the promotion and application of new copper-iron alloy materials, copper water pipes for construction, copper alloys with low precipitation of heavy metals, charging pile base stations and other new infrastructure copper materials.
Group photo of participants
3. Copper strip and copper rod enterprises continue to expand, and industry competition intensifies
The projects put into production in the copper strip industry in 2020 include: Zhejiang Weijing New Materials Co., Ltd. put into production high-precision copper strip with an annual production capacity of 60,000 tons, Jinchuan Nickel Industrial Co. The casting part of the 10,000-ton copper plate and strip project (tin phosphor bronze, micro-alloyed high-precision copper plate and strip) has been put into production, and the processing part will be put into production in 2021.
The companies under construction in the copper strip project in 2020 include: Boway Alloy (50,000 tons), Jintian Copper (40,000 tons), Wuxing Copper (50,000 tons), Zijin Copper (10,000 tons of technical expansion) , Shanxi Beibei Copper New Materials (20,000 tons), Guangxi Xinke (30,000 tons), Jiangxi Copper Copper Strip (10,000 tons of technical transformation and expansion), Guangzhou Copper Plant (50,000 tons of technological transformation and expansion), etc.
The main new projects in terms of copper rods are: Hailiang Co., Ltd. Zhuji Nonferrous Metals Intelligent Manufacturing Park Phase I 150,000-ton/year copper rod project will all reach production in 2020; Jintian Copper Headquarters 50,000-ton high-strength and high-conductivity copper alloy rod and wire project is in progress Under construction; On May 18, the foundation stone was laid for the first phase of the Jiangxi Guixi Libo Nonferrous Metals Intelligent Manufacturing Industrial Park; in August, the technical transformation project of Ningbo Changzhen Copper Co., Ltd. with an annual output of 200,000 tons of recycled and environmentally friendly high-precision copper production lines was completed. EIA and energy-saving review are under construction.
4. The processing fees of copper pipes and copper rods continue to decline, overcapacity is worth vigilant against, and industry self-discipline needs to be strengthened urgently
Affected by the overcapacity of the copper tube industry, the reduction of air-conditioning production, and the oligarchy of downstream air-conditioning companies, the national copper tube production will decline in 2020, and the processing fee will also be reduced to around the cost line. In terms of new copper pipe projects, except for a copper pipe production line newly put into operation by Runlai Technology, no other new continuous casting and rolling copper pipe projects will be put into operation in 2020, and the industry construction enthusiasm has dropped sharply.
The annual production capacity of copper rods of Jiangxi Copper Group exceeded 2 million tons. In September, the production line of copper rods with an annual capacity of 220,000 tons in Jiangxi Copper North China was put into operation; in December, Jiangxi Copper Huabei and Tianjin Great Seamless signed a mixed-ownership reform project agreement and became the controlling shareholder of Great Seamless. Jiangxi Copper Group has a total annual production capacity of 2.01 million tons of copper rods, as follows: Jiangxi Copper has an annual production capacity of 440,000 tons of copper rods in North China, Tianjin Seamless Copper Rod with an annual production capacity of 300,000 tons, and Jiangxi Copper Co., Ltd. with an annual production capacity of 370,000 tons of copper rods. , Jiangtong East China copper rod annual production capacity of 150,000 tons, Guangzhou Jiangtong copper rod annual production capacity of 750,000 tons.
The main other copper rod projects put into operation in 2020 are: In April, the production line of Henan Xinchang Copper Industry with an annual output of 220,000 tons was put into operation; in May, the production line of Jiangxi Jinpin Copper Branch with an annual output of 180,000 tons was put into operation, and the annual output of Jinye Copper was 220,000 tons. The ton production line was put into operation; in July, the project of Jintian Copper with an annual output of 350,000 tons of high-conductivity and high-toughness copper rods and wires was put into operation.
The main copper rod projects that have started construction in 2020 include: Anhui Tianda Copper Industry’s 250,000-ton copper rod production line, Huzhou Jiuli Electric’s annual output of 180,000 tons of copper rod for magnet wire and 10,000 tons of special copper rod production line, Baosheng Precision The annual production capacity of conductors is 220,000 tons of copper rod production lines, and Jintian Copper has two 350,000-ton copper rod production lines.
The production capacity of copper rods and pipes in my country has been severely overcapacity, and the processing fee has hit a new record low, which has fallen below the industry average cost line. Some enterprises are in trouble, and industry self-discipline needs to be strengthened. Only the output value and GDP theory need to be corrected urgently.
5. Copper foil is still a hot spot for investment in copper processing
With the continuous expansion of the new energy vehicle and PCB markets, copper foil production capacity continues to expand. Companies that will put into production lithium battery copper foil production lines in 2020 include: Chaohua Technology, Hunan Longzhi, Tongling Huachuang, Shandong Hesheng, Jiangxi Xinbo Rui, etc., with a total new production capacity of 17,000 tons/year; in 2020, the production of electronic circuit copper foil The production line companies include Chaohua Technology and Hunan Longzhi, with a total new production capacity of 13,000 tons/year. In 2020, the production capacity of electronic circuit copper foil is 348,000 tons, and the production capacity of lithium battery copper foil is 215,600 tons, totaling 563,600 tons, with an annual growth rate of 5.6%, which is the lowest growth rate in the past five years.
In 2020, the project was established and announced that it will invest in new electronic copper foil production lines in China: Chaohua Technology, Jiayuan Technology, Shengda Electric, Qinghai Nord (Phase II), Huizhou United Copper Foil, Huayou Holdings, Guangdong Weihua , Longdian Huaxin, Nanya Electronics, Ganzhou Yihao, etc.
Companies that are expected to have new electrolytic copper foil production line projects put into operation in 2021 include: Jiangxi Ruicai, Mingfeng Electronics, Shengda Electric, Jiujiang Defu, Qinghai Nord, Huizhou United Copper Foil, Chaohua Technology, Lingbaoxin, Jiangxi Copper Yates, Shandong Hesheng, Hubei Zhongyi, etc., have newly added lithium battery copper foil production capacity of 100,500 tons/year, and electronic circuit copper foil production capacity of 70,000 tons/year.
6. The scale, level and influence of the annual conference of China's copper processing industry in 2020 will reach a new record high and move towards a world-class brand conference platform
On September 3, it was co-sponsored by the Processing Association, the Tongling Municipal People's Government of Anhui Province and Tongling Nonferrous Metals Group Holdings Co., Ltd., and undertaken by Tongling Economic and Information Bureau, Tongling Copper Association, and Tongling Jingda Special Electromagnetic Wire Co., Ltd. The 2020 China Copper Processing Industry Annual Conference and China (Tongling) Copper Industry High Quality Development Conference was grandly held in Tongling City, Anhui Province. There were more than 500 copper processing related enterprises and more than 1,100 people participated in the event, including the deputy general manager level and above. There are more than 450 personnel. The number of participants in the professional sub-forums such as copper processing market and capital, copper sheet, strip and foil, copper tube rod and wire and special processing is increasing. After years of cultivation, the China Copper Processing Industry Annual Conference has become the most authoritative, largest, highest-level, most distinctive and influential exchange platform in the copper processing industry, and has received the participation and extensive participation of most enterprises in the industry. approval.
7. The 2020 (4th) Summit of 20 Enterprise Leaders in China's Copper Strip Industry was successfully held
From December 18th to 19th, the "2020 (4th) China Copper Sheet and Strip Industry Leaders Summit of 20 Enterprises", hosted by the Processing Association and undertaken by CNMC Technology Co., Ltd. and Chinalco Luoyang Copper Processing Co., Ltd., was held in Henan Held in Luoyang City, Province. The chairman and general manager of 20 key domestic copper plate and strip manufacturers attended the summit. The theme of the summit was "Change • Opportunity • Joint Force • Win-win". The participating entrepreneurs discussed production and operation, transformation and upgrading, import substitution, new product development, copper price fluctuations, risk prevention and control, and future planning, and reached five consensuses. At present, the import substitution of red copper strip, oxygen-free copper strip, and tin-phosphor bronze strip is very fast, and there is still a big gap with foreign products in the fields of cupronickel strip, high-copper alloy strip, and half-etched lead frame strip.
8. Anti-dumping investigations on the export of copper pipes and copper strips
On April 20, 2020, the Ministry of Commerce and Industry of India initiated anti-dumping on imported copper and copper alloy coil products originating in or imported from China, South Korea, Malaysia, Nepal, Sri Lanka and Thailand at the application of India Agrawal Metal Products Company. investigation. On July 13, the Australian Anti-dumping Commission initiated an anti-dumping and countervailing investigation on copper pipes imported from China, and initiated an anti-dumping investigation on copper pipes imported from South Korea. The Ministry of Commerce organized enterprises to respond to the lawsuit, and China Nonferrous Metals Industry Association and Processing Association provided relevant assistance. Anti-dumping investigations not only target copper products produced in my country, but also copper tube products produced by factories set up overseas by my country.
With the continuous enhancement of the international competitiveness of my country's copper industry, it is inevitable that the export of products will encounter trade protection.
9. The copper processing industry has achieved fruitful results in technological innovation, green manufacturing and intelligent manufacturing
In December, Ningbo Jintian Copper (Group) Co., Ltd. high-performance copper alloy bar was selected as the fifth batch of single champion products of the Ministry of Industry and Information Technology.
Seven copper processing industry projects won the 2020 China Nonferrous Metals Industry Science and Technology Award. Among them, 5 first prizes: "Preparation and Industrialization of Special Copper Alloy Components for High-speed Rail Transit Motor Rotors" (Shaanxi Sirui, Central South University, Xi'an University of Technology), "Key Technology and Short-Process Processing of High-Performance Copper Alloy Strips" Application" (University of Science and Technology Beijing, CNMC (Ningxia) Dongfang), "Key Technology and Application of Electrolytic Copper Foil Production Automation" (Anhui Tongguan Copper Foil, Central South University, Hunan University of Science and Technology), "High-quality Electrolytic Copper for Li-ion Batteries" Foil Key Technology R&D and Industrialization" (Lingbao Huaxin, Zhejiang University of Technology, Kunming Precious Metals Research Institute, Ruipu Energy), "Precision Manufacturing Technology and Application of High-frequency Copper Clad Laminates and High-speed Multilayer Circuit Boards for 5G Communication Base Stations" ( Chongqing Institute of Science and Technology, Chongqing Fangzheng High-density, Chongqing Dekai Industry); 2 second prizes: "Development of Copper and Copper Alloy Pipes for PD Ring Conduction Belt" (Chalco Luoyang Copper Processing), "Nano-phase Enhanced Copper-Based Alloy" Key Preparation Technology and Application of Powder" (Institute of Materials and Processing of Guangdong Academy of Sciences, 6 research institutes including new powder materials).
10 copper processing enterprises were awarded the title of the fifth batch of green manufacturing green factories by the Ministry of Industry and Information Technology in 2020: Zhejiang Hailiang Co., Ltd., Shanghai Longyang Precision Composite Copper Tube Co., Ltd., Chongqing Pinghu Jinlong Precision Copper Tube Co., Ltd., Shaanxi Sirui New Material Co., Ltd. Co., Ltd., Tianjin Jingdaria Special Enameled Wire Co., Ltd., Fujian Zijin Copper Co., Ltd., Jiangxi Jiangtong Longchang Precision Copper Tube Co., Ltd., Jiangxi Copper Group Copper Co., Ltd., Jiangxi Copper Copper Co., Ltd., Jinchuan Group Wire and Cable Co., Ltd.
The intelligent manufacturing demonstration production lines of Hailiang Co., Ltd., Jintian Copper Industry, Boway Alloy and other enterprises have begun to take shape, and the production efficiency has been further improved. The intelligent manufacturing mode of the copper processing industry is taking shape, injecting new vitality into the high-quality development of the industry.
10. The largest comprehensive copper processing enterprise in China - Jintian Copper successfully landed on the main board of the Shanghai Stock Exchange
On April 22, Ningbo Jintian Copper (Group) Co., Ltd. (stock code: 601609, referred to as "Jintian Copper") successfully listed on the main board of the Shanghai Stock Exchange, issued 240 million shares at an issue price of 6.55 yuan, and raised 1.585 billion yuan. It is used for the construction and repayment of bank loans for projects with an annual output of 40,000 tons of high-precision copper alloy strips, an annual output of 30,000 tons of high-purity low-oxygen copper strands for special cables, and an annual output of 350,000 tons of high-conductivity and high-toughness copper wires. This is the third time that Jintian Copper has submitted an IPO application. Previously, due to the financial crisis in 2008 and the IPO suspension period in 2011, Jintian Copper suspended the listing process successively. Jintian Copper is the company with the most categories in the copper processing field and the largest output of comprehensive copper processing materials in my country. The successful listing of the main board has also boosted confidence for the development of the entire industry.
11. In 2020, the price of copper will fluctuate greatly, which will bring trouble to the production of some copper processing enterprises
At the beginning of 2020, with the global spread of the new crown epidemic, U.S. stocks fused four times, and copper prices suffered a direct cliff-like fall. On March 23, Shanghai copper futures reached a minimum of 35,350 yuan / ton. With the global central bank launching a new round of monetary easing policies, downstream demand has significantly improved and concentrated release, copper prices have finally come out of the trough and rose all the way, Shanghai copper futures touched 59,620 yuan / ton at the end of 2020. The operating range of the Shanghai copper futures index for the year is 35,350-59,620 yuan/ton, with a volatility of 24,270 yuan. For copper processing enterprises with processing fees as the main source of profit, the sharp drop in copper prices at the beginning of the year resulted in a large impairment of corporate inventories. troubled. Copper processing enterprises should do a good job in hedging, avoid the risk of copper price fluctuations, and maintain a stable and long-term business.
12. The Processing Association announced the output of copper pipes and copper strips for the first time
Since 2017, the Processing Association and Antaike have started to release the production statistics of copper processing materials in China according to copper strips, copper strips, copper pipes, copper rods, copper foils, copper wires and other categories. It was released for the first time in the industry on April 13, 2020. The more refined copper output by variety, including the output of copper strip, copper pipe and other data by variety, provides a more accurate reference for the government to formulate industrial policies and enterprise production and operation decisions, and has received high attention from both inside and outside the industry. and widely adopted.