BEIJING (Reuters) -China is studying ways to strengthen regulation on the expansion of copper smelting capacity, a state news outlet said on Thursday, as persistently low processing fees have reduced smelting profits. 

Chen Xuesen, vice chairman at the China Nonferrous Metals Industry Association, was quoted as telling a meeting on Wednesday that low concentrate processing fees were the "most prominent" problem the industry faces.

The low fees stem from what is known in China as "involution-style" competition, or competition so fierce that it is self-destructive. It follows a major expansion of smelting capacity that outpaced mined supply and tightened availability of concentrate.

"Involution-style competition has hurt interests for both the industry and country, so copper enterprises should resolutely oppose it," Chen said. "The association has proposed specific measures for strictly controlling the expansion of copper smelting capacity."

Processing fees for copper smelters that miners pay to turn concentrate into metal form have hit record lows.

Representatives from major copper smelters including Jinchuan Group, Jiangxi Copper, Tongling Nonferrous, China Copper, Daye Nonferrous, China Minmetals, Zijin Mining attended the meeting, according to state-backed China Nonferrous Metals News.