Non-Ferrous Metal Industry's Growth in China Slows Down

China¡¯s non-ferrous metal industry is declining in its growth due to exceeding per capita consumption, increase in the costs, and extensive economic growth. The reasons for the slower growth in the industry are detailed as follows. Firstly, China's non-ferrous metal production and consumption accounts for about 30% of the global total, meaning that per capita consumption in China has surpassed the global average level. Secondly, cost continues to rise, and corporate profitability is declining after earlier rises, which gradually dampens the corporate enthusiasm for sustained fast growth in capacity expansion. Thirdly, extensive economic growth has led to a tight supply of resources and energy in China and China has continuously rolled out regulatory and control policies, which will help the industry change the growth mode with focus on capacity expansion, and step onto the path of sustained development.

It is forecast that China's output of non-ferrous metals will grow at a rate of around 10% in the period 2008-2010, even lower than 10%, and meanwhile growth rate of consumption will slow down accordingly.

After years of rapid rises, non-ferrous metal prices have begun dividing. Some of non-ferrous metal prices have dropped due to the impact of supply growth, and some have still remained at high level because of tight supply.

China's investment in overseas market by its non-ferrous metal producers is increasingly active, but they are still at initial stage and still face great risk.

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