Introduction to the nonferrous metals industry market in the first half of 2024

Haihao Group closely monitors the fluctuations in the raw materials market, ensuring that we remain informed about key industry trends and developments. This vigilance allows us to adapt swiftly to changing conditions, safeguarding our ability to provide high-quality products and services to our global clients.

On August 3rd, the China Nonferrous Metals Industry Association held a press conference to report on the performance of the nonferrous metals industry in the first half of 2024. The overall situation reflects stable growth in nonferrous metal production, a significant increase in fixed asset investments, and record-high profits for large-scale nonferrous metal enterprises, indicating an improvement in economic operations.

nonferrous metals

Specifically, in the first half of 2024, the production of ten commonly used nonferrous metals reached 32.549 million tons, marking an 11.0% year-on-year increase, with an average growth rate of 7.0% over two years. Refined copper production was 5.154 million tons, up by 12.3% year-on-year, with a two-year average growth of 5.7%. Primary aluminum production totaled 19.635 million tons, representing a 10.1% year-on-year increase and a 5.6% average growth rate over two years.

Investment in the nonferrous metals industry also saw a positive trend after several years of decline. In the first half of this year, total fixed asset investment in the industry grew by 15.7% year-on-year, with an average growth rate of 2.9% over two years. Investment in mining and dressing increased by 12.0% year-on-year, while investment in smelting and rolling processing grew by 16.5% year-on-year.

The surge in investment confidence is largely attributed to the continued sharp rise in nonferrous metal prices. Data shows that the three-month LME copper price reached a historical high of $10,747 per ton in the first half of the year. In the domestic spot market, the average copper price was 66,636 yuan per ton, up by 49.2% year-on-year. For aluminum, the average price in the domestic spot market was 17,421 yuan per ton, representing a 31.6% year-on-year increase.

Supported by rising prices, profits for nonferrous metal enterprises also hit new highs. In the first half of 2024, large-scale nonferrous metal industrial enterprises (including independent gold companies) achieved a total profit of 163.97 billion yuan, an increase of 224.6% year-on-year. This profit is 35.66 billion yuan more than that of the first half of 2017, with an average growth rate of 6.3% over four years. Meanwhile, the asset-liability ratio has decreased slightly. As of the end of June 2024, the asset-liability ratio of large-scale nonferrous metal industrial enterprises stood at 60.6%, narrowing by 2.8 percentage points compared to the same period in 2017.

At Haihao Group, we understand the importance of staying informed about market trends, especially in volatile times. By keeping a close watch on these developments, we ensure that our strategic decisions are well-informed, enabling us to continue delivering value to our customers in a dynamic and competitive market.