Analysis of the Development Prospects of Copper Processing Industry II

Copper processing materials are used in a wide range of applications and involve almost all national economic industries. The industries with large consumption of copper products in China mainly include: electricity, construction, household appliances, transportation and electronic communication.

1) Downstream industry of electrified railway contact network products

Electrified railway contact lines and load-bearing cables are key equipment for electrified railways and are mainly used in the construction and maintenance of electrified railways. In recent years, the construction of China’s electrified railways is in rapid development, and the construction of railways has brought huge market demand for contact network products. In the future, China’s railway construction will focus on the construction of railway networks in the central and western regions and the construction of inter-city railways in the eastern urban agglomerations. The planned construction tasks and related investments will continue to grow, providing a strong market guarantee for the sustainable development of the railway contact network equipment industry.

2) Downstream industry of copper bus products

Copper busbar products are mainly used in power generation, transmission and distribution. Almost all large-scale sites and large-scale construction projects use busbar equipment. The application range is very wide, and their market demand is closely related to the development of the national economy. China is currently in the stage of rapid industrialization and urbanization. The investment in infrastructure such as electric power, new rural construction and transportation is increasing. The rapid advancement of new energy, new materials, information consumption and new urbanization will make copper in related industries. Bus demand is growing steadily.

Trends in changes in industry profits and reasons for changes
Copper processing products mainly adopt the pricing form of “raw material price (copper price) + processing fee”, in which the market price of copper material is relatively transparent, and the profit level of copper processing enterprises mainly depends on processing costs. Due to the wide application fields of copper processing products, the products in different application fields are different in terms of technical process, processing difficulty, market competition, etc., resulting in large differences in processing costs for products in different fields. Generally speaking, the enterprises in China’s copper processing industry are mainly small and medium-sized manufacturers. The products are mainly primary copper processing products with low technical content and high similarity. The homogenization competition in the market is fierce, which weakens the profitability of manufacturers.

Therefore, the national industrial policy actively encourages the development of copper processing products in the direction of new materials and deep processing. Future development prospects are expected.

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Shirley N.//SMC Editor

Guest contributors are welcome at the Alloy Wiki.It is a weekly wiki and guide on alloy information and processing technology, while also about the vast array of opportunities that are present in manufacturing. Our team of writers consists of a Machining Material Supplier / Machinist / Tool and Die Maker, a Biomedical Engineer / Product Development Engineer, a Job Development Coordinator / Adjunct Professor, and a President and CEO of a manufacturing facility.