Why does China have so much copper and aluminum

China is one of the world's largest producers and consumers of copper and aluminum. In recent years, the country has been increasing its production of these metals to reduce dependence on imports and meet growing domestic demand. However, China’s own reserves of copper and aluminum are not always sufficient, compelling the country to maintain a strong presence on the global market as a major importer.

Cooper:

China produces approximately 1.8–2.0 million tons of copper annually. The country's domestic reserves and production volumes are relatively small, so a significant portion of copper is imported from countries such as Chile, Peru, Australia, and the Democratic Republic of Congo. In 2022, China imported around 6.5 million tons of copper ore and concentrates.

The main copper mining regions in China are the provinces of Yunnan, Jiangxi, and Sichuan, as well as Inner Mongolia. However, even with increased production, domestic copper production accounts for only about 30% of the country's total consumption.

Aluminum:

China is the world leader in aluminum production. In 2023, the primary aluminum production volume exceeded 39 million tons, making China the largest producer.

The main aluminum production regions in China are the provinces of Henan, Shanxi, Inner Mongolia, and Guangxi. These areas host the largest aluminum plants, which source raw materials from bauxite mines and are expanding their processing capacities to increase production.

Aluminum consumption in 2023 was estimated to be between 46 and 50 million tons. Although China is the largest producer of aluminum in the world, providing over 39 million tons of primary aluminum annually, it continues to actively import raw materials, including bauxite and alumina, mainly from Russia, India, and Indonesia. This is due to high demand in the cable and construction industries, as well as in the electric vehicle sector.

Copper and aluminum in the cable industry

In 2023, the total global copper consumption was around 25 million tons, of which 60% was used in the cable industry, amounting to approximately 15 million tons. China is the main consumer of copper, with around 8-9 million tons of copper used annually in the cable industry.

The cable industry consumes about 10-12% of the total global aluminum supply, which amounts to around 7-8 million tons annually, with total consumption at 70 million tons. The Chinese cable sector accounts for approximately 3-4 million tons of aluminum annually. The use of aluminum is increasing due to its lower cost compared to copper, especially in energy cables.

Export

Copper and aluminum exports from China are limited as the country aims to retain reserves for domestic consumption. China exports small volumes of copper, primarily in the form of finished products such as cables and wires, which are in high demand in Southeast Asia, Europe, and the United States.

Aluminum exports are also limited due to government quotas and tariffs. However, China exports a large amount of aluminum products, including sheets, profiles, and structures, primarily to Indonesia, South Korea, and Mexico.