China’s Non-ferrous Metal Sector Posts Sharp Profit Surge Driven by AI and New Energy Demand

Official industrial data released by the China Nonferrous Metals Industry Association lays out robust operational results for China’s above-scale non-ferrous metal enterprises in the first half of this year, with revenue and profits registering substantial year-on-year expansion, while demand for copper, aluminium and rare metals surges amid global build-outs of artificial intelligence computing infrastructure.

Total operating revenue of qualifying non-ferrous metal firms hit 5.77 trillion yuan across the first six months, representing a 21.7 per cent year-on-year rise. Aggregate industry profits reached 418.39 billion yuan, marking a 94.0 per cent year-on-year jump, outpacing profit growth recorded across most industrial segments. Combined output of ten core non-ferrous metals stood at 41.51 million tonnes, a moderate 3.3 per cent increase from the same period last year.

Strong demand stemming from emerging industrial verticals underpins the sector’s bright financial performance. Global rollouts of AI computing hubs, power batteries, energy storage hardware and new energy vehicles have generated sustained rigid demand for copper, aluminium, tin, tantalum and indium. Tight supply chains for upstream mineral ores have pushed up resource premiums, channelling a larger share of industry profits towards mining operations. Geopolitical tensions have lifted spot prices for electrolytic aluminium and sulphuric acid, delivering temporary profit uplifts, while low price baselines recorded in the first half of last year further amplify the year-on-year profit expansion.

Profit distribution across the industrial chain displays a clear pattern where smelting activities deliver the bulk of earnings growth, followed by mining segments and downstream processing divisions. Mining, smelting and processing operations contribute 23.6 per cent, 65.5 per cent and 11.0 per cent of total profit growth respectively, driving sector-wide profit expansion by 22.1, 61.6 and 10.3 percentage points. Smelting operations generated an additional 132.74 billion yuan in profits, accounting for 65.5 per cent of the industry’s total profit increment, with aluminium and gold smelting acting as the primary growth drivers within this segment.

Aluminium stands out as the top performing category in profitability metrics. The segment’s total profits rose by 114.84 per cent year-on-year, lifting its profit share within the broader non-ferrous metal sector from 35.61 per cent in the first half of last year to 39.43 per cent. Continuous technological innovation, digital transformation and low-carbon upgrades have supported the development of advanced aluminium alloys tailored for fast-growing industries. Domestic producers now supply battery aluminium foil, high-toughness aluminium alloys, die-casting materials free of heat treatment, and high-end aerospace aluminium products to meet requirements from new energy transport, low-altitude aviation, computing energy storage and sophisticated equipment manufacturing.

Export volumes of finished copper products record strong overseas uptake. Copper rod and wire exports totalled 177,900 tonnes, jumping 89.9 per cent year-on-year. Copper strip shipments reached 71,300 tonnes with an 18.1 per cent annual rise, while copper foil exports hit 93,000 tonnes, up 31.4 per cent compared with the first half of last year. Global copper demand patterns have shifted away from conventional real estate and infrastructure projects towards artificial intelligence and renewable energy applications. Overseas demand for computing and energy storage hardware has exceeded market forecasts through the first six months of the year.

Liquid cooling copper tubing, high-voltage copper busbars, high-precision copper foil for high-speed connectors and power supply busbars form critical components within AI computing centres, all requiring large volumes of specialised copper processing materials. Accelerated deployment of energy storage facilities worldwide fuels demand for lithium battery copper foil and connection busbars. Global power grid modernisation and rising penetration of electric vehicles create steady demand for copper cables and strips, jointly lifting overall consumption of finished copper goods.

China has built the world’s most complete copper processing industrial ecosystem after decades of development, covering full product ranges and specifications with unmatched production capacity and delivery capacity on a global scale. Mature manufacturing capacity and proprietary technical reserves have been established for high-end products including ultra-low profile electronic copper foil and high-precision copper strip, enabling rapid responses to overseas order requirements.

As an energy-intensive industrial category, non-ferrous metal producers face clear imperatives to advance energy conservation and carbon reduction measures. A joint circular issued by the National Development and Reform Commission alongside relevant authorities launches a three-year campaign for energy efficiency upgrades across heavy industries, setting clear timelines and implementation frameworks. Policy targets specify a 20 percentage point average rise in production capacity meeting top-tier energy efficiency benchmarks for electrolytic aluminium and steel sectors by the end of 2028.

Industry participants will roll out equipment retrofits and boost reliance on recycled raw materials to secure consistent metal supplies for new energy and digital technology sectors. Cross-industry collaborative innovation will accelerate the commercial adoption of low-carbon production technologies to realise simultaneous gains in productivity, operational efficiency and carbon emissions cuts. Stakeholders will build integrated green industrial chains tailored to local resource, energy and industrial endowments, forming a coordinated low-carbon development framework for the whole sector.

Industrial value-added growth for non-ferrous metals is set to accelerate through the second half of the year, with full-year expansion projected to land between 2 per cent and 3 per cent. Operators across the sector will capitalise on growth opportunities within global artificial intelligence and renewable energy industries to expand emerging business lines and upgrade traditional manufacturing segments. Continuous work will safeguard independent, stable supply chains while steadily lifting overall operational quality across the industry.