WEMO 2025 (complet) - Flipbook - Page 60
02 Critical resources
China’s strategic preemption over key resources signi昀椀cantly constraints global availability
Initial assessments of global supply chains reveal a signi昀椀cant
concentration of production among a limited number of
countries, with China occupying a dominant position - particularly
in re昀椀ning capacities.
Crucially, the volumes available to the global market are what
remain after China meets its own domestic demand and ful昀椀lls
long-term contractual obligations. This further constrains supply
for other countries and ampli昀椀es market tightness.
Additionally, commodity markets (resources market) display limited
liquidity. For instance, only about 40% of global copper production is
traded on open markets, which restricts hedging options and reduces
the market’s ability to respond 昀氀exibly to demand 昀氀uctuations.
Paradoxically, it is market prices - shaped by these very constraints
- that determine production margins and signal future investment
decisions.
China's Share of Global Re昀椀ning Production (%)
Copper
40%
Steel
~54%
Nickel
65-70% (control and investment in Indonesia's re昀椀ning capacity)
Aluminum
~60%
Rare Earths
90%
Lithium
60%
Cobalt
73%
Silicon
Over 70% (including ~67% of global polysilicon)
Source: IEA, Critical Mineral Outlook, 2024; USGS, 2025
