China’s Copper Industry Climate Index Shows Steady Momentum Amid Balanced Growth in Production, Investment, and Demand

According to the latest monitoring model released by China Nonferrous Metals News, China’s monthly Copper Industry Climate Index stood at 42.0 in August 2025, up 2.7 points from July. This marks the second consecutive monthly increase, keeping the index within the “normal” range (30–50).

The leading index registered 79.6, down slightly by 0.1 points, while the coincident index jumped 4.4 points to 78.2—emerging as the main driver behind the improvement.

The copper sector currently displays a clear pattern of stable production, active investment, and differentiated demand:

l   Supply side: Smelters maintained high capacity utilization, refined copper output continued to grow steadily, and projects for technological upgrades and environmental improvements advanced.

l   Investment side: Fixed-asset investment accelerated, with both new capacity and upgrade projects expanding, signaling market confidence in medium- to long-term development.

l   Demand side: Consumption from power and new energy sectors continued to rise, while traditional construction demand showed regional divergence, with growth slowing in some areas due to property-sector controls.

The two-month rise in the Climate Index was largely underpinned by supportive macroeconomic policies. Recent measures promoting bulk commodity consumption and advancing manufacturing upgrades helped strengthen market confidence. The strong increase in the coincident index reflects solid fundamentals in production and demand, while the marginal dip in the leading index signals potential risks in the next one to two quarters, including global mine supply fluctuations and changes in the international trade environment.

Looking ahead, the long-term fundamentals for copper remain positive. Under the dual-carbon strategy and rapid expansion of the new energy sector, copper’s role as a strategic metal is expected to grow further. Experts from the China Nonferrous Metals Industry Association note that the industry will accelerate its transition toward high-end, green, and intelligent development. Industry concentration is likely to increase, with leading companies reinforcing their competitive advantages through technological innovation and supply chain integration.

Source：Changjiang Nonferrous Metals Network