China Business Intelligence Network News: my country is a big consumer of copper, but its reserves are limited. In order to solve the shortage of domestic copper resources, the recycling of scrap copper has made an important contribution to meeting my country's copper consumption needs. After years of development, my country's recycled copper industry. A complete industrial chain of "recycling - dismantling - processing and utilization" has been formed. In 2021, China's secondary copper industry will run smoothly, favorable policies for secondary copper will be issued frequently, output will increase steadily, and the import volume of scrap copper will stop falling and rise.

1. Operation of the recycled copper industry in 2021

1. The policy is favorable for the development of the recycled copper industry

Recycled copper is a product of recycled scrap copper smelted again. As a renewable resource, the recycling and utilization of scrap copper can not only alleviate the current situation of lack of copper resources in my country, but also meet the current national requirements for energy conservation, emission reduction and environmental protection. In 2021, the state has issued a series of policies to support the development of the secondary copper industry.

For example, in July 2021, the State Council issued the "14th Five-Year Plan for Circular Economy Development", which requires the production of recycled non-ferrous metals to reach 20 million tons by 2025, of which the production of recycled copper will reach 4 million tons.

Source: Compiled by China Business Industry Research Institute

2. Recycled copper production rebounded

From 2016 to 2019, China's secondary copper production and output showed steady growth. According to data from the Recycled Metals Branch of the China Nonferrous Metals Industry Association, affected by the epidemic in 2020, the production of recycled copper will be reduced to 3.25 million tons. In 2021, my country's investment in recycled non-ferrous metals will continue to maintain steady growth, and the output of recycled copper is expected to be 3.34 million tons.

Data source: compiled by the Ministry of Commerce, Recycled Metals Branch, and China Business Industry Research Institute

3. Increase in the amount of scrap copper recycling

The raw material of recycled copper is scrap copper. With the development of China's environmental protection industry, copper scrap recycling has developed rapidly, and the amount of scrap copper recycling has continued to grow. According to data from the Ministry of Commerce, the recycling volume of copper scrap in 2019 was 2.15 million tons, and it is expected that the recycling volume of copper scrap in China will reach 2.39 million tons in 2021.

Data source: Compiled by the Ministry of Commerce and China Business Industry Research Institute

4. The import volume of scrap copper stopped falling and rose

In recent years, the import policy of scrap copper has become increasingly strict. Influenced by the policy of banning the entry of foreign waste and the continuous expansion of domestic concentrate smelting capacity, the import volume of scrap copper in my country has continued to decline. The smooth implementation of the free import policy of scrap copper in 2021 will actively promote the enthusiasm of domestic scrap copper importers to import; at the same time, the sharp rise in copper prices will greatly stimulate the enthusiasm of global scrap copper suppliers to ship. In addition, driven by domestic demand, the newly added production capacity is relatively large, and the supply of domestic scrap copper has been in a tense situation, which has pushed up the price of domestic scrap copper and attracted the inflow of overseas scrap copper sources. In 2021, scrap copper imports will be about 1.69 million tons, an increase of 750,000 tons or 79.79% year-on-year.

Data source: Compiled by the General Administration of Customs and China Business Industry Research Institute

2. Development prospects of the recycled copper industry in 2022

At present, developed countries already have a complete recycling system of recycled copper. For example, the production of recycled copper in the United States accounts for 60% of the total output, and Germany accounts for 80%. There is a big gap between the level of recycled copper recycling in my country and foreign countries. The current national policy is to vigorously develop the development of the renewable resource industry. Therefore, the recycled copper industry in my country still has a lot of room for development.

With the fierce market competition and the survival of the fittest, as well as through mergers and acquisitions and the extension of the industrial chain, the industry will be further standardized; with the promotion of green design and green process equipment, the speed of industrial upgrading will be accelerated. China will change from a big country of recycled copper to a strong country of recycled copper.

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