倒贴钱买原料，行业协会疾呼“反内卷”

Core Viewpoint - The copper smelting industry in China is facing significant challenges due to "involutionary" competition, leading to persistently low copper concentrate processing fees and pressure on profit margins for major companies [4][5]. Industry Overview - The third council meeting of the Copper Industry Association highlighted the severe impact of "involutionary" competition on the copper smelting sector, prompting the association to propose measures to control capacity expansion [4]. - Copper concentrate processing fees, which include smelting and refining costs, have been at historically low levels, with significant declines observed in both long-term and spot prices [5][6]. Financial Performance - Major companies like Tongling Nonferrous Metals and Northern Copper reported declines in net profits due to low processing fees, with Tongling's net profit down 33.94% year-on-year to 1.441 billion yuan, marking the first decline in five years [5]. - The gross profit margins for copper products across leading firms have decreased, with margins ranging from 1.9% to 8.2%, significantly impacting overall revenue as this segment accounts for over 70% of total income [5][6]. Supply and Demand Dynamics - The decline in processing fees is primarily attributed to tightening copper concentrate supply, as global mining companies have reduced future production guidance, shifting the market from surplus to shortage [6][7]. - China's reliance on imported copper ore, which constitutes over 80% of the supply structure, exacerbates the supply-demand imbalance, especially as domestic smelting capacity has expanded rapidly [6][7]. Strategic Responses - In response to the challenging environment, leading companies are focusing on cost reduction and enhancing the profitability of by-products to mitigate the impact of low processing fees [7]. - For instance, Yunnan Copper reported a 24% increase in net profit to 1.317 billion yuan by implementing cost-cutting measures and increasing the contribution of by-products like sulfuric acid, which saw a gross margin increase of 35.41 percentage points [7].