The Chinese government will soon introduce policies to curb over-investment and smelting capacity expansions in the Chinese copper industry, according to Wang Gongmin, vice president of the China Nonferrous Metals Industry Association (CNIA).

Speaking with reporters after addressing delegates at Beijing Antaike Information Development Co.'s China International Copper Forum in Zhangjiagang, Wang said measures will focus more on copper smelting and less on refining capacity, as the latter is not increasing as substantially as smelting. He declined to say when the policies will be introduced.

About 1.16 million annual tonnes of smelting capacity currently is being added as the result of expansions of existing plants or new plants being built, according to Wang, while another 950,000 tonnes are in the planning stage. "It is hard to say when this new capacity will be commissioned, as the government might even not allow them to expand," he said.

China has smelting and refining capacity of about 1.6 million tonnes and 3 million tonnes per year, respectively, according to Wang.

Wang declined to comment on market rumors that the government might introduce a copper concentrate import permit system similar to that in place for alumina, saying he had not heard of such plans by the government.

The industry has been speculating that China will clamp down on the sector to curb the expansion plans of small copper smelters following a speech by a National Development Commission official who said the government is concerned that smaller smelters are expanding too rapidly. He said the government does not want a repeat of the situation in the aluminum sector, where over-expansion caused a supply glut.