In the first three quarters of 2017, as the average copper price rebounded, the profitability of copper enterprises increased significantly. Operating revenue and net profit of 18 sample companies increased by 13.08% and 233.52% respectively over the same period of last year with an average gross profit margin of 8.64% Over the same period increased by 0.95 percentage points, of which mining companies and high self-sufficiency rate of copper smelting business profitability increased significantly.
Benefiting from the increase in average copper price and the overall profitability of the industry, the cash flow from operating activities of copper enterprises improved significantly in the first three quarters of 2017. As the industry boom rebounded, copper enterprises to speed up capacity expansion, the overall debt burden rose slightly.
Affected by the tight supply and demand of copper mines and the weakening of the U.S. dollar, copper prices continued to rise in the first three quarters of 2017
Since 2017, the supply of copper has been limited due to factors such as the strike-stoppage of some overseas copper mines, the tougher environmental protection in China and the restriction on imports of scrap copper. In respect of copper demand, the global economy as a whole improved, the US dollar weakened, the Chinese economy maintained a high growth rate, and the downstream demand for infrastructure, electricity and home appliances boomed. The copper supply and demand as a whole tightened. The copper price continued its upward trend in the fourth quarter of 2016. As of the end of September 2017, the price of LME3 rose 18.32% at the beginning of the year to US $ 6,531 / tonne and the SHFE copper rose by 14.02% at Rmb51880 / tonne. In the first three quarters of 2017, the average copper price of LME copper and SHFE was 5,947.31 US dollars / tonne and 47,690.95 yuan / ton respectively, up 25.89% and 30.27% respectively over the same period of 2016, an obvious increase.
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