The increase in output has brought pressure to China's non-ferrous metal industry to save energy and reduce emissions

The state-owned non-ferrous metallurgy industry is currently facing a complex development pattern: on one hand, it is actively phasing out outdated production capacity, yet on the other, output has been rising rapidly. This "sawboard" type of unbalanced growth has not only failed to reduce energy consumption in China’s non-ferrous metals sector but has actually increased it. The momentum of rapid development from January to July this year indicates that the industry remains skeptical about achieving energy savings and emission reductions. Energy consumption has surged alongside output growth, echoing the rapid expansion seen in 2006. From January to July this year, China’s total output of ten non-ferrous metals reached 13.09 million tons, up by 2.58 million tons compared to the same period in 2006, reflecting a 24.58% increase. Copper production stood at 1.89 million tons, an 10.92% rise; primary aluminum reached 6.94 million tons, up 36.28%, or 1.85 million tons over the previous year—accounting for 72% of the industry's total output. Lead output was 1.59 million tons, increasing by 7.21%, while zinc output reached 2.08 million tons, up 20.56%. It is clear that the rapid growth of electrolytic aluminum has become the main driver behind the overall increase in non-ferrous metal production. During the “Tenth Five-Year Plan,” the non-ferrous metals industry made progress in energy conservation. For example, the power consumption for aluminum ingots dropped to 14,575 kWh/ton in 2005, a 5.8% decrease from 2000. Overall energy consumption for copper smelting fell to 733.1 kg of standard coal per ton, down 42.6% from 2000. Despite these improvements, the sector remains a major energy consumer in China. In 2005, the industry consumed over 80 million tons of standard coal annually, accounting for about 3.8% of the country’s total energy use. The rapid expansion of production capacity, especially in primary aluminum, has significantly increased energy demand, placing heavy pressure on energy-saving and emission reduction efforts. The non-ferrous metals industry faces five key challenges in its energy-saving and emission reduction efforts. First, investment in smelting projects continues to grow. From January to July this year, fixed asset investment in the sector reached 81.4 billion yuan, a 41.33% increase from the previous year. Second, there is a lack of comprehensive energy consumption standards, making it difficult to accurately measure and regulate energy use across different products and processes. Third, the rapid growth of smelting capacity, particularly in electrolytic aluminum, has led to a surge in total energy consumption. Fourth, the mechanism for eliminating outdated production capacity is still underdeveloped, making it hard to phase out inefficient facilities. Finally, the industry lacks strong technological innovation capabilities, resulting in a gap between current energy efficiency levels and global best practices. To address these issues, the China Non-Ferrous Metals Industry Association, along with the National Development and Reform Commission and the State Environmental Protection Administration, has proposed several major measures. These include adjusting product structures, accelerating the elimination of outdated production capacity, promoting energy-saving technologies, increasing investment in key projects, developing a circular economy, and establishing a more robust energy conservation and emission reduction index system. These steps aim to bring China’s non-ferrous metals industry closer to international energy efficiency standards and ensure sustainable development in the coming years.

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