en_矿业资讯

Iron ore, steel futures slip in rout of risky assets as Chinese demand ebbs

Source: www.chinamining.org   Citation: Reuters   Date: August 25, 2015

Domestic iron ore and steel futures fell sharply on Monday, hitting their downside limits as they were caught up in a broad-based selloff of risky assets that was sparked by fears that a cooling Chinese economy could spark a global slowdown.

Other commodities from copper to oil fell to their lowest levels since 2009 and Asian equities plummeted, led by Chinese stocks, which dived more than 8 percent. Global markets also fell.

The spot price of iron ore, the biggest commodity produced by global miners Vale, Rio Tinto and BHP Billiton, has rebounded by more than one-quarter from a decade low of $44.10 per ton reached in July.

But a slowing Chinese economy could put the focus back on a global glut that has pulled iron ore prices down for a third year running amid shrinking steel demand in China.

"In a broad way, it feels like we`re back where we started in 2009. Things are shaky to the extent where all the progress we`ve made in the past years looks to have been erased," said Howie Lee, analyst at Phillip Futures in Singapore, on the rout in risky assets.

The latest data on China, released on Friday, showed its factory sector contracting this month at its fastest pace in more than six years.

That number weighed further on sentiment toward the Chinese economy, said Helen Lau, analyst at Argonaut Securities in Hong Kong.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China to `take rightful place` in gold market

Source: www.chinamining.org   Citation: China Daily   Date: August 17, 2015

The Shanghai Gold Exchange is to launch the yuan-denominated gold index this  year, predicted to increase China`s gold pricing power. (Photo provided to China Daily)

Growth in the global gold market is shifting from West to East and China should further liberalize its gold exchanges. This will allow international participation with the country finally "taking its place" in the world market, said Roland Wang, managing director for China at the World Gold Council.

Wang pointed out that the expansion of strong gold trading hubs in Asia will improve price discovery, liquidity, transparency and efficiency. This in turn will transform the landscape of the gold market which will benefit China.

One catalyst for China`s increasing gold pricing power is the much-talked-about yuan-denominated gold index, expected to be launched by the Shanghai Gold Exchange by the end of this year.

This new gold index will provide competition to the London Gold Fix, which is currently the global reference point for the industry, meaning that gold buyers and sellers will look to the benchmark to determine the exact price of their specific trade.

The Shanghai Gold Exchange was established in 2002 to centralize China`s gold trading. It now consists of a Main Board for Chinese traders and an International Board, which is dedicated to foreign investors.

Currently the Main Board and International Board are separate from each other because the yuan is not freely convertible and China`s capital controls mean financial trades made by domestic and foreign traders have to be separate in order to help maintain currency control.

But once the yuan can be freely converted, the two boards are expected to merge and the SGE will become a gold exchange center globally, with Shanghai taking its place as one of the three major international gold exchanges, alongside New York and London, Wang said.

While China is a big consumer of gold globally, it still lacks pricing power.

Wang said Chinese banks need to increase their participation in international gold exchanges so that the demand and supply of gold in China can be reflected in prices in global markets.

"China`s lack of international participation tends to directly affect China`s competition for gold price-fixing power," Wang added.

"Only by involving Chinese financial institutions in the global gold fix mechanism, and by advancing (yuan-) denominated commodities to encourage foreign investors to conduct business in the China market, can China increase its gold price-fixing power accordingly."

One major milestone in China`s participation on international gold exchanges is Bank of China becoming the first Chinese lender to join the London Gold Fix, among seven other banks.

Administrated by the ICE Benchmark Administration Ltd, the London Gold Fix is a twice daily electronic auction held in London which determines the benchmark gold price.

Wang said this move by the Bank of China will reinforce the connection between the Chinese and overseas markets, with the international gold price better reflecting supply and demand in China, as well as promoting the internationalization of the Chinese gold market.

"Bank of China`s participation in the Gold Fix is the first step for China being the largest gold market in the world, and to become a gold trading center along with London and New York," Wang said.

In the long term China`s increasing gold pricing power globally will fuel the yuan`s internationalization. The International Board of the SGE looks certain to offer a range of yuan-denominated products in future for foreign investors to trade in, which in turn will increase liquidity for the yuan internationally.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China LPG prices continue to edge lower on seasonal demand lull   

Source: www.chinamining.org   Citation: Platts   Date: August 17, 2015

Imported and domestically produced LPG prices continued to edge lower across southern and eastern China this week amid bearish market outlook and the seasonal lull in demand, local trade sources said Friday.   

Import cost for cargoes arriving in the first half of September was estimated below Yuan 3,000/mt ($468.68/mt) CFR China, based on recent Asian refrigerated LPG values, which was lower than the current spot prices in the domestic market, according to traders.   

This is believed to have dampened buying interest and exerted downward pressure on spot prices this week, trade sources noted.   

In China`s southern Guangdong province, imported LPG cargoes of mixed propane and butane were said to have traded at around Yuan 3,350-Yuan 3,400/mt in the wholesale market this week, down slightly by Yuan 50/mt from Yuan 3,400-Yuan 3,450/mt in the previous week.   

"We are not optimistic about the price in the near future ... import cost for later arrivals have dropped to around Yuan 3,000/mt or even lower," a trader said.   

"Besides, LPG supply is ample amid weak seasonal demand, which has discouraged buying interest as well," he noted.   

Four refrigerated cargoes, totaling around 110,000 mt, were reported to have arrived in Guangdong province this week, up slightly from around 103,000 mt seen in the previous week, according to updated shipping data from Beijing-based energy information provider JYD Commodities Hub.   

Domestically produced LPG was said to have traded at Yuan 3,300-Yuan 3,400/mt in the region this week, also down by around Yuan 50/mt from last week.   

Trading activities remain thin as many buyers continued to maintain relatively low inventory levels amid a bearish market outlook, traders added.   

In eastern China, both imported and domestically produced LPG was said to have traded at around Yuan 3,550-Yuan 3,650/mt and Yuan 3,500-Yuan 3,600/mt, respectively, in the region this week, down by about Yuan 50/mt from a week ago as well.   

Bearish market outlook and weak demand were also cited as main reasons behind the fall in spot LPG prices in the region this week, according to traders.

Demand for feedstock LPG from petrochemical plants was said to have faded further this week due to lower crude prices, which also exerted downward pressure on residential-use LPG prices, local traders said.   

Feedstock LPG was heard to have traded at around Yuan 3,650-3,750/mt in East China this week, down by around Yuan 100/mt from last week.   

Petrochemical plants in China typically use domestically produced LPG as feedstock to produce MTBE and alkylate, which are blended to produce gasoline.   

Feedstock LPG contains more alkenes than residential use LPG.

 About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Gold strengthens on demand for safe-haven

Source: www.chinamining.org   Citation: Global Times/Agencies   Date: August 14, 2015

Rally could be short-lived if U.S. dollar continues to gain ground

Gold rose for a fifth session in a row on Wednesday to trade near a three-week high, benefiting from safe-haven demand as risky assets slid after China`s devaluation of the yuan stoked fears of a currency war.

China`s surprise 2 percent devaluation of the yuan on Tuesday was seen as a move to bolster a flagging economy.

The move hit global equities, prompting some investors to seek safe-haven assets such as gold, which has now recovered more than 3 percent from a 5.5-year low of $1,077 that the precious metal hit in late July.

Asian stocks and emerging market currencies tumbled on Wednesday after China allowed the yuan to fall sharply for a second day.

Spot gold rose as much as 1 percent to its highest since July 20 at $1,119.80 an ounce in earlier trade and was up 0.8 percent at $1,117.76 by 0920 GMT.

"The only reason gold may benefit will be purely from a safe-haven perspective," said OCBC Bank analyst Barnabas Gan.

But if China`s action indeed spurs a currency war, every currency would depreciate and the dollar would continue to strengthen, said Gan, eventually weakening gold.

Gan also said the weaker yuan would make it more expensive for China, the world`s top consumer, to import gold, potentially extending weak Chinese demand that has been the case since 2014.

U.S. gold for December delivery gained 0.5 percent to $1,113.10 an ounce.

China`s currency devaluation is unlikely to distract the U.S. Federal Reserve from a domestic economy that appears increasingly ready for higher interest rates, economists and Fed watchers said.

That could limit gold`s upside potential. A looming hike in U.S. interest rates had weighed on non-interest yielding bullion.

"We are still looking for a rate hike this year despite all that`s happened," Gan said.

Spot silver dropped 0.4 percent to $15.22 an ounce after hitting a one-month high on Tuesday. Platinum was steady at $984.70 an ounce, having touched a three-week high overnight, while Palladium was little changed at $601.90.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s Gargantuan Aluminum Exports Poised to Get Even Bigger

Source: www.chinamining.org   Citation: Bloomberg   Date: August 13, 2015

China`s ballooning exports of aluminum will probably get even bigger because of the surprise yuan devaluation.

The country is the world`s biggest producer of the metal, which is used in everything from beverage cans to airplanes. Many Chinese producers haven`t cut output even amid slumping prices, partly because of government subsidies, according to Goldman Sachs Group Inc. Domestic demand has weakened at the same time, spurring a flood of aluminum to the global market.

China`s shipments in 2015 through July surged 28 percent from last year, to a record. With this week`s yuan devaluation, the aluminum market should brace itself for even more supplies, because the weaker currency will lower domestic production costs.

"It`s clearly bearish, because at the margin, it lowers domestic cost of production in dollar terms," Stephen Briggs, an analyst at BNP Paribas in London, said in a telephone interview. "It is an encouragement to export" more, he said.

Aluminum for delivery in three months tumbled 14 percent this year to $1,589 per metric ton on the London Metal Exchange as of Wednesday.

The average cost to produce primary aluminum in the country dropped by $12 a ton, to $1,728, after China devalued its currency`s fix against the dollar by 1.9 percent, according to Harbor Intelligence. The firm estimates that a 10-percent devaluation versus the dollar would cut output costs by a further $50, to $1,678 a ton.

Through July, China exported 2.87 million metric tons of unwrought aluminum and aluminum products in 2015, according to customs data. That was the highest for the first seven months in a year since comparable data began in 1999.

"This devaluation is aimed at restoring some of China`s lost export competitiveness," Jorge Vazquez, Harbor`s managing director, said in a research report on Tuesday. "China`s ongoing structural economic slowdown, overcapacity and overproduction will remain major drivers behind falling commodity prices ahead."

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Turnover of rare earth exchange surges in first 7 months

Source: www.chinamining.org   Citation: Xinhua   Date: August 12, 2015

Turnover of China`s rare earth exchange surged drastically in the first 7 months of this year due to declining prices and rising demand.

The Baotou Rare Earth Products Exchange processed 116,400 tonnes of products in the first 7 months, with a trading volume of 15.755 billion yuan (2.57 billion U.S. dollars), up 277 percent compared to the full year of 2014, according to Gu Ming, the exchange general manager.

"The drastic price decline of rare earth products invigorated the market demand," Gu said.

During the first six months of this year, the average export price of rare earth products was 32,000 yuan per tonne, down 34.7 percent from the same period of last year, according to local customs.

As of the end of July, about 120 rare earth enterprises and agents had opened accounts in the exchange, said Gu.

The exchange will compile the rare earth price index and promote cross-border e-commerce in the near future, he said.

China began setting quotas and high duties on rare earth exports in 2010, causing friction with the European Union, Japan and the United States. Quotas were removed on Jan. 1 this year, and export duties were canceled in May after a WTO ruling in August 2014 declared the measures inconsistent with WTO rules and China`s accession protocol.

The Baotou Rare Earth Products Exchange was launched in March 2014 in north China`s Inner Mongolia Autonomous Region. It was initiated by China North Rare Earth Group Co. Ltd, the country`s leading rare earth producer, and another 12 firms and institutions with a registered capital of 120 million yuan.

Rare earth metals are vital for manufacturing high-tech products ranging from smartphones and wind turbines to electric car batteries and missiles.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

LME base metals` prices rise on Monday

Source: www.chinamining.org   Citation: Xinhua   Date: August 12, 2015

The base metals prices on the London Metal Exchange (LME) closed higher on Monday.

Copper price rose because of the supply shortage.  

Chile-owned copper giant Codelco said striking workers damaged its Salvador mine, and talks to end a nearly three-week strike came to a halt.

Besides, reports said heavy rains in northern Chile forced some mines to stop operations.

The three-month unofficial copper price increased 70 U.S. dollars, or 1.35 percent, to 5,257 U.S. dollars per tonne.

The three-month unofficial aluminium price increased 11.25 U.S. dollars, or 0.70 percent, to 1,610.25 U.S. dollars a tonne.

The three-month unofficial lead price increased 38.5 U.S. dollars, or 2.25 percent, to 1,748 U.S. dollars a tonne.

Besides, the three-month unofficial zinc price increased 19 U.S. dollars, or 1.01 percent, to 1,894 U.S. dollars a tonne.

The three-month unofficial nickel price increased 252.5 U.S. dollars, or 2.31 percent, to 11,165 U.S. dollars a tonne.

The three-month unofficial tin price increased 325 U.S. dollars, or 2.12 percent, to 15,650 U.S. dollars a tonne.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Steel mills expect gains from output suspension

Source: www.chinamining.org   Citation: China Daily   Date: July 28, 2015

Workers at a steel factory in Dalian, Liaoning province. China`s daily average

output of crude steel has seen further contraction in July. [Photo/China Daily]

Beijing will adopt a specific air quality control plan to temporarily close factories for the military parade celebrating the 70th anniversary of victory in World War II, which will have a positive effect on steel prices, mysteel.com said.

Some steel mills based in the places such as Handan and Tangshan in Hebei province and Taiyuan in Shanxi province have already received notice asking them to reduce or suspend production during the celebration to be held on September 3, according to steel information provider mysteel.com.

About 30 percent of steel capacity will be reduced from the end of August to early September, while from the end of September to the National Day holiday (from October 1 to 7), all the steel mills located within 100 kilometers of Beijing will be completely shut down, it said.

China`s daily average output of crude steel has seen a further contraction in July as dwindling profits led to domestic steel mills overhauling factories and reducing the steel output, resulting in a moderate rise in prices.

But experts said that the rebound will only be short term as real demand simply is not there due to a weak economic outlook.

Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, said that overcapacity in the steel industry can hardly be improved by measures like temporary closure.

"The plan will curb production growth temporarily, but it will hardly have any effect on the steel market, because demand is still weak and overall economic outlook is not promising," he said, adding that the market will remain weak for the second half of this year.

Xu Yongbo, an analyst with First Futures, said steel prices saw a slight rebound in the futures market this month but sluggish demand and resilient overcapacity are holding down prices.

China`s steel association said in a statement that 43 percent of its steel mill members suffered losses in the first half of this year due to an "insufficient demand" and plummeting prices due to overcapacity in the sector.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.