1. Characteristics of domestic copper machining industry
Copper is one of the earliest metals discovered by human beings, and it is also one of the best pure metals. It is slightly hard, extremely tough, wear-resistant, and has good ductility. At the same time, it has good thermal and electrical properties and good formability. machining. Copper and copper alloys have good corrosion resistance, are stable in dry air, durable and recyclable. Therefore, copper machining materials are widely used in power, electronics, communications, automotive, chemical, computer, light industry, instrumentation, daily hardware, machinery manufacturing, construction engineering and military industries due to their excellent comprehensive properties. China’s copper applications are mainly distributed in power cable, real estate and home appliance industries. Among them, the consumption of the power cable industry accounts for more than 40%, followed by the real estate and home appliance industries. In addition, the automotive industry has also become one of the driving forces for copper consumption in recent years.
(1) Production concentration is not high
The overall production concentration of China’s copper machining industry is low. Enterprises in the industry generally have low specialization and small production scale. From a long-term perspective, in order to adapt to changes in the economic environment, small and medium-sized enterprises with low value-added products and weak R & D capabilities in the industry will be phased out, thereby accelerating market integration, increasing the market share of high-quality enterprises, forming scale effects, and reducing Operating costs to enhance the competitiveness of domestic and foreign markets.
(2) Industrial structure needs further adjustment
With the economic transformation and the improvement of technology, the demand for raw materials in downstream industries has gradually turned to high-end copper machining materials. However, at present, most copper machining enterprises in China generally suffer from small scale, scattered production, inadequate technology and equipment, unstable product quality, disordered competition, many rough-processed products, low product added value, and low resource utilization. As a result, the overall industry’s ability to resist risks is low, and overcapacity of low-end products. Therefore, domestic high-end sophisticated products cannot meet the needs of rapid economic development, and the supply gap formed is mainly solved by imports. Compared with the world’s copper machining enterprises grouping, brand-name strategy, and competitive advantage, China’s copper machining industry needs to further adjust its structure, increase investment in research and development, increase product added value, reduce production costs, and strengthen industrial support.
(3) Pay equal attention to economic benefits and energy conservation and environmental protection
With increasing global environmental awareness and increasing energy shortages, the manufacturing industry is increasingly moving towards environmental protection and energy conservation. The traditional copper machining method is a three-stage method, that is, melting ingot-hot machining-cold machining, which has the disadvantages of high energy consumption, serious pollution, and low yield. In the process of upgrading the industrial structure, domestic copper machining enterprises need to pay more attention to the innovation of industrial energy-saving and emission-reducing technologies while improving product performance and technology levels and increasing the utilization rate of raw materials in order to promote the development of China’s low-carbon, energy-saving and environmental protection.
(4) The bargaining power of the industry chain is weak
The copper machining industry is located in the middle reaches of the copper industry chain. The upstream is the copper smelting industry. The downstream is widely used in electrical, electronics, defense, and model manufacturing industries. However, due to the uneven development of the industry scale, the current copper machining industry has insufficient bargaining power for the industry’s upstream and downstream. It is manifested in two aspects:
First, the copper smelting industry is a capital and technology-intensive industry. Capital strength, mining resources, production scale, technical equipment, environmental protection and production management experience all constitute major barriers to entry into the smelting industry. Therefore, domestic copper smelting is dominated by large-scale smelting enterprises and the industry concentration is relatively high. Therefore, the copper smelting industry has a higher bargaining power for downstream.
Second, copper machining enterprises generally adopt a “copper price + machining fee” pricing model for downstream customers. Machining fee income is the main source of corporate profits. However, due to the domestic economic downturn, the shrinking of the downstream consumer market has become a common problem facing the current copper machining industry. At the same time, due to the blind expansion of production capacity of domestic copper machining enterprises in the early stage and the competition of foreign companies, the machining fees of enterprises in the industry are constantly being squeezed.
2. Domestic industry development trends
The production and consumption of international copper are mainly concentrated in China, the United States, Japan, and Germany. Among them, China has the highest output and consumption, but the production of high-precision copper is mainly concentrated in the United States, Japan, and Germany. Copper machining developed countries represented by the United States, Japan, and Germany, their copper deep machining companies have completed the integration process of structural reorganization, realized the market mechanism of survival of the fittest, and moved towards high value-added copper deep machining. At the same time, they have established multinational groups to conduct global Operations such as KME, Wieland, Olan, and Mitsubishi. These companies have the characteristics of world-leading production technology, complete copper products, strong R & D strength, and strong capital. High environmental protection and high precision copper products are the mainstream of the development of the world copper industry and an inevitable trend of the development of the copper industry. In contrast, despite China’s rapid economic development, the copper industry structure is not complete, resources are scarce, and high-value-added products are uneven, hindering the development of domestic related industries. Adjusting the copper industry structure, comprehensively upgrading the copper machining industry chain, and creating deep machining of copper under high added value are the inevitable trends of China’s copper machining industry.
As China’s economic development accelerates China’s demand for copper, especially high-end copper, the world’s focus of copper machining materials production has gradually shifted to China. In order to meet market demand, the state has issued a series of related policies to encourage development. The Ministry of Science and Technology listed “Clean Production and Deep Machining Technology of Copper and Its Alloys” as a high-tech field supported by the state.