Non-ferrous metals industry rebounded

China Nonferrous Metals Industry Association's July monthly “China Environment and Non-Ferrous Metals Industry Monthly Climate Index Report” (hereinafter referred to as the “Report”) shows that the non-ferrous metals industry has returned to a more stable state and is expected to continue the trend of stabilization and recovery.

According to the report, in July this year, the China Nonferrous Metals Industry Climate Index was 55.3, which rose by 1.0 point from last month. It broke through the upper limit of the “cold” range and entered the “normal” range. The non-ferrous metals industry’s booming degree further rebounded, showing steady recovery. The trend; the leading index of China Nonferrous Metals Industry has started to rebound slightly since March of this year. It rose to 93.7 in July, a 1.1 percentage point increase from the previous month. The continuous rise in five months indicates that the nonferrous metals industry is expected to continue the trend of stabilization and recovery in the future.

The report also pointed out that the risk factors that restrict the further improvement of the non-ferrous metal industry, the structural contradictions of the non-ferrous metal industry, and the uncertainties affecting the industry's continued steady growth remain, and will adversely affect the production and operation of non-ferrous metal companies and restrict the non-ferrous metals industry. Further improvement. Specifically, the industry chain of non-ferrous metals is “large in the middle and small in both ends”, with excess smelting capacity, inadequate mine support capabilities, and high value-added deep processing products. The overall situation is still at the low end of the international industrial division of labor. The structure is irrational and the problem of overcapacity is short-term. It is difficult to fundamentally solve the problem; the non-ferrous metal industry is under pressure from resources, energy, and the environment; the electrolytic aluminum production capacity has not yet been significantly resolved, the output efficiency of industrial assets is low, the cost of one hundred yuan in main business income remains high, and the financial costs are high. The increase in the margins and the increase in accounts receivables and other factors constraining the company's profitability continue to exist; recent increases in non-ferrous metal prices at home and abroad have not ruled out short-term speculation.