China’s Expansion of Copper Blending Business to Private Firms Amid Supply Challenges, Sources Reveal

China has begun allowing more private firms to engage in the domestic blending of more polluting complex copper concentrates, as disclosed by three individuals with knowledge of the situation. This move comes as the country, which smelts half of the world’s copper, is facing difficulties in securing sufficient standard grades of copper concentrates.
The relaxation of restrictions could potentially broaden the range of copper concentrates that China can import, considering that such concentrates are currently subject to strict customs regulations. The Ministry of Ecology and Environment in China did not promptly respond to a request for comment on this matter.
China holds the position of the world’s largest copper consumer yet is only the fourth largest mined producer. Consequently, it must import copper concentrate, a material derived from crushed copper ore and later processed into refined metal, to fulfill its consumption requirements.
Currently, China’s import standards permit only approximately 20% of the world’s copper concentrates to be imported into the country, with the remaining being deemed too polluting.
Traditionally, only large state-owned enterprises have been authorized to purchase and blend copper concentrates containing higher levels of toxic chemicals such as arsenic compared to standard grades.
Foreign traders, who are also prohibited from processing polluting concentrates within China, are compelled to blend concentrates in South Korea, Malaysia, and Taiwan before selling them to Chinese smelters.
However, over the past few months, as the shortage of standard copper concentrates has intensified, the government has issued at least three new licenses to private firms to process lower grades of copper concentrates, according to the three sources.
One such example is the new blending facility in Dalian port, as announced by the Liaoning provincial government of northeast China on Nov. 1.
Over the years, China has experienced rapid expansion in copper smelting, which has hastened a global shortage of copper raw materials and caused concentrates such as MB-CU-0287 to become more expensive than ever before.
The scarcity of copper concentrates has already led to forced shutdowns of some of China’s most ambitious copper projects, including the postponement of Tongling Nonferrous’s new plant (630.SZ) to the second half of 2025.
According to consultancy CRU, around 3.2 million tons of new Chinese copper smelting capacity is waiting to come online in the next five years.

China’s Expansion of Copper Blending Business to Private Firms Amid Supply Challenges, Sources Reveal
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