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Efficiency, not involution: China curbs metals sector to fight extreme competition
['He Huifeng']
South China Morning Post
China has announced production curbs in its strategic non-ferrous metals sector, the latest step in Beijing’s drive to rein in cutthroat competition and boost industrial efficiency.
AdvertisementIn a new action plan the Ministry of Industry and Information Technology (MIIT) has projected output growth of 1.5 per cent for primary non-ferrous metals this year, down from 4.3 per cent last year.
Instead of setting a target to produce more of the metals, the ministry stressed optimising the industrial structure to achieve an average annual growth rate of about 5 per cent in value-added output.
AdvertisementDominated by state-owned players, the non-ferrous metals sector is a vital supplier of copper, aluminium, lithium and other resources to China’s manufacturing and hi-tech industries.
But processing fees, especially for copper concentrate, have remained depressed this year, squeezing smelter margins.