CHINA MINING News

China to boost metals stockpiles as part of reform

Source: www.chinamining.org        Citation: Bloomberg    Date: June 16, 2016

China plans to increase its stockpiles of base metals, via both state and commercial reserves, as it seeks to balance supply and demand amid a commodities glut, according to two people with knowledge of the matter.  

The plan includes studying a trial programme for companies to build reserves separate to their inventories, the people said, declining to be named because the information is confidential.  

China already holds stockpiles of metals though the State Reserve Bureau. The people didn`t give a timeline on when any new initiatives might be implemented or how they would be financed.  

Commodity prices have collapsed since 2011 as mounting supply meets lacklustre demand in China, the world`s top consumer, which is facing its slowest growth in decades.  

Other measures under consideration include accelerating reforms that would cut taxes for domestic miners, and adjusting trade policies to support exports of refined metals derived from imported ore, like copper and tin, the people said.  

Calls to Li Pumin, Beijing-based spokesman at the National Development and Reform Commission, the country`s top economic planner, seeking comment on the measures went unanswered.  

The plan reiterates the broader goals of China`s so-called supply-side reforms, including limits on new industrial capacity and stepping up the closure of excess capacity. 

China`s fading infrastructure boom has left it saddled with too much capacity after decades of rapid growth. The nation`s steel industry, in particular, has drawn fire from competitors for exporting its surplus too cheaply, stoking trade tensions and hammering profits globally.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

Chinese company to boost Serbian metal industry: experts

Source: www.chinamining.org        Citation: Xinhua     Date: June 16, 2016

The Smederevo steel mill stands a good chance to recover and develop after it was sold to Chinese HeSteel Group (HBIS), experts and officials said.

Ljubisa Obradovic, secretary of the association of the metal-electro industry, metal mines and metallurgy at the Serbian Chamber of Commerce, said the Serbian metal-electro industry gained a lot by the arrival of Hesteel.

"The arrival of Hesteel to Serbia opens huge potential in the metal-electro industry and mining in the sense that the level of production will double," he told Xinhua.

Slobodanka Susa, director of the Serbian Association of the Steel Industry, said the steel mill is an important part of the "infrastructure of the Serbian economy" and new investors will need money to improve technology and offer a wider range of products.

"The HBIS is one of the biggest in the world and have the possibility to have cheap raw material to produce steel in Smedervo and that is most important for continuity of production in Smederevo," she said.

She explained that the continuation of production in Smederevo means regular delivery to domestic markets and to exports. For Serbia it means it can expect an increase in economic activity.

The Smederevo steel mill was founded in 1913. After it went bankrupt in 2003, it was sold to U.S. Steel for the price of 23 million U.S. dollars.

Serbia became the owner of the steel mill once again in 2012 when the investor from the United States withdrew and the country bought the factory back for 1 U.S. dollar. After the departure of U.S. steel, the country was looking for a new investor, while the company`s 5,000 workers were sent on paid leave until April 2013 when the furnaces of the steel mill in Smederevo started operating again with limited capacity.

HBIS was the sole competitor at a tender which finished on April 6, and bought the factory for 46 million euros (51.6 million U.S. dollars).

Many workers were glad as the takeover of the steel mill ended years of uncertainty.

For Goran Gigic, a 38-year-old shift manager, the steel mill will gain a lot by becoming a part of Hesteel.

"I expect that production will increase, new technologies implemented, to work more and live better from our work," Gigic said.

Ivan Matkovic, 37, a deputy shift manager who spent 16 years in Smederevo, hoped the new owner will increase financial investments.

"We hope for better times, and that we continue to work professionally as always," he said.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

Pressuring China on `excess steel capacity` is unfair

Source: www.chinamining.org     Citation: Xinhua   Date: June 13, 2016

Some Western countries have pressured China hard lately on the excess capacity in its steel sector, hoping to protect their self-interests and gain more in trade negotiations with China. Whatever interests they pursue, they should be fair-minded.  

Excess capacity as an economic term should not be abused. In almost all markets, it is natural for enterprises, especially profitable ones, to maintain some extra capacity. The reason is demand tends to fluctuate over time, and that they want to capture as large a share of the market as they can and make the most when still better time comes. 

The huge steel capacity the world has today was spurred by a strong demand in the earlier booming cycle -- both in China and across the world. Many of the steel firms, including those in the United States and Europe, as well as the iron ore exporting economies, benefited from the boom.  

At the development stage back then, the Chinese economy happened to be an important driver. But it is nothing to be ashamed of. China`s housing market took off in the early 1990s and almost all the 1.3 billion people in the country were housed properly within 20 years.  

Even as the rest of the world fell into an economic downturn, the housing demand in China persists, though its growth has been slower. This is mainly because China has a shortage of infrastructure.  

Should China be blamed for increasing spending in infrastructure at a time of external economic downturn? In truth, such investment in infrastructure not only helped cushion China from the shock of a sharp slowdown in external demand, but also helped the world economy by contributing demand and growth that the world desperately needed. And most importantly, there was a solid infrastructure demand.  

The market cycle is unstoppable. The lower housing demand in China unfortunately coincides with the prolonged sluggish growth across the major advanced economies.  

China did not specifically choose to support the steel sector when it increased fiscal spending amid the downturn. Rather, its steel sector expanded thanks to advantages in terms of cost and closeness to the market as well as the strong profitability.  

Excess capacity, or rather a weak demand, is a shared challenge. World economies should make concerted efforts to solve it instead of pointing fingers at any one in order to create a pretext for practicing protectionism.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China, Iran to jointly build oil terminal in Persian Gulf

Source: www.chinamining.org         Citation: People`s Daily Online   Date: June 13, 2016

China and Iran have signed a contract to jointly establish an oil terminal on Qeshm Island in the southern Persian Gulf, which will turn the island into an important hub for oil production and reserves, Iran`s official media reported on June 12.  

Iran`s Machine Making Co. signed the contract, valued at $550 million, with China`s largest heavy industry enterprise to build the island into Iran`s largest oil production and reserve base.  

After the completion of the first phase of the project, Qeshm Island will be capable of storing 10 million barrels of crude oil, according to Iranian state television.?  

This is one of the largest projects currently in the field, according to an employee working on the project. It can accommodate tankers up to 140 meters deep and at least 30 million barrels of crude oil.?  

The oil terminal involves a 10-year lease agreement and will generate up to $300 million in revenue every year.  

Located north of the Strait of Hormuz, Qeshm Island is the largest island in both Iran and the Persian Gulf, covering an area of 1,491 kilometers. All oil tankers in the Persian Gulf will have to pass through it.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

US investigations of Chinese mills imprudent, protectionism the problem: MOFCOM

Source: www.chinamining.org    Citation: Xinhua   Date: May 23, 2016

The Ministry of Commerce (MOFCOM) has labeled US anti-dumping and countervailing duty investigations into steel plates from countries and regions including China "imprudent," and it blamed protectionism for the troubles of US producers of steel.

"The US has recently taken a series of trade remedy measures against steel exports from other countries and regions. Such acts are imprudent and cannot help US steel businesses solve their problems," the MOFCOM said in a statement posted on its website on Saturday.

"After more than three decades of protection and subsidies, the US has distorted competition in its domestic steel market, deprived local companies of motivation to increase investment or improve technology and subsequently blunted their competitive edge," the MOFCOM statement said.

Against a backdrop of global slowdown and overcapacity, countries should cooperate and coordinate more, follow WTO rules and promote free trade, rather than resorting to protectionism, said the statement.

China encourages and supports its companies in responding to the US investigations according to law.

"We will closely watch the case and use WTO rules to safeguard the rights and interests of Chinese companies," the ministry vowed.

The US has said in a preliminary ruling that certain carbon and alloy steel cut-to-length plate from 12 countries and regions including China, Japan, South Korea and France, had substantially harmed the US steel industry.

The move came shortly after the US Commerce Department set final anti-dumping duties of 265.79 percent and anti-subsidy duties of 256.44 percent on imports of cold-rolled flat steel from China on Tuesday.

The State Council, China`s cabinet, said Wednesday that China will cut its steel capacity by about 10 percent in the next two years.

Joint efforts are needed to cut overcapacity in the global steel sector, the MOFCOM said.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China not encouraging mass steel exports: association

Source: www.chinamining.org    Citation: Xinhua   Date: May 22, 2016

China does not seek to boost steel exports, a Chinese association said on Tuesday in an attempt to mitigate worries that the country is dumping its steel products to ease a domestic supply glut.

China`s steel exports have been rising in recent years. In 2015, Chinese firms sold 112 million tons on overseas markets, up 20 percent year on year.

"The government has adopted a series of measures to curb the trend," China Iron and Steel Association (CISA) said in a market report, citing export duties and lower tax rebate rates for some steel products.

CISA attributes the export surge mainly to increasing demand following the global economic recovery and improvement in Chinese products.

Weighed on by a slowdown in the broader economy, China`s steel industry is being squeezed by serious overcapacity at home and anti-dumping investigations abroad.

More efforts have been made by the government to downsize the industry, but the situation remains challenging. Meanwhile, the United States and Europe have launched probes or imposed exorbitant tariffs on Chinese steel using methods that, China has argued, violated rules of the World Trade Organization.

CISA said it is willing to resolve trade friction but will "resolutely fight protectionism and oppose politicizing the steel trade issue."

Despite its economic woes, China remains the world`s largest steel producer and consumer.

The government has shut down factories with total capacity of over 90 million tonnes in the past five years and plans to slash another 100 million to 150 million tons by 2020.

Crude steel output fell for the first time in a quarter century in last year, down 2.33 percent year on year.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China resumes environmental approval of coal-to-gas projects

Source: www.chinamining.org         Citation: Reuters     Date: May 20, 2016

Chinese regulators have approved three new coal-to-gas (CTG) projects, ending a suspension lasting more than a year amid doubts about pollution risks as well as the economic viability of the technology.  

The three projects, approved in March and April, will produce 4 billion cubic meters (bcm) of synthetic natural gas a year. They are located in the coal-producing regions of Shanxi, Xinjiang, and Inner Mongolia, which have borne the brunt of a slowdown in coal demand and lower prices.

The Shanxi project, a joint investment by state-owned CNOOC and the Datong Coal Mine Group, is expected to cost 26 billion yuan ($3.97 billion). It was shelved for three years until winning approval in March from the Ministry of Environment Protection (MEP).  

China has pledged to reduce its coal dependence, a major source of air pollution and greenhouse gas emissions. However, policymakers are also trying to secure a soft landing for a sector that employs more than 5 million people, and coal-to-gas has the potential to be a new opportunity for mining firms.  

China aims to raise gas consumption to 360 bcm by 2020, but domestic output is only expected to reach 190 bcm, meaning it will need to boost imports or find alternative sources.  

But the government is still struggling to find a compelling economic and environmental rationale for the technology, especially as oil and gas prices fall.

China has an unofficial CTG output target of 15 bcm a year, state media reported last year. The country originally planned to raise CTG production to around 50 bcm a year by 2020, but cut back after a flood of new project approvals raised the concerns of regulators.  

"The market is not on the side of CTG producers, and the projects remain costly," said Liu Guangbin, a gas analyst with SCI International.  

China has three CTG projects in operation and another four under construction, and there are 17 additional projects undergoing "preparatory work", according to environmental group Greenpeace.  

The projects will cost 456 billion yuan and add 68 bcm a year of gas if they all go into operation, Greenpeace estimates.  

CTG production may also drain water supplies in coal-producing regions that are already dangerously arid.  

"Waste water handling remains a unsolved problem," said Gan Yiwei, energy and climate campaigner with Greenpeace. "CTG can`t be seen as a way out to help with coal overcapacity, and it is not the clean utilization of coal." 

($1 = 6.5424 Chinese yuan)

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China rejects latest US steel measures

Source: www.chinamining.org         Citation: Global Times   Date: May 19, 2016

`Unjust` moves don’t comply with WTO rules: MOFCOM

A worker oversees the production of cold-rolled flat steel in a factory in Dalian, Northeast China`s Liaoning Province. Photo: IC

China on Wednesday expressed strong dissatisfaction over a decision by the US to launch anti-dumping and anti-subsidy probes into Chinese cold-rolled steel imports and the country`s refusal to offer Chinese State-owned enterprises differentiated tax rates, calling the practices "unjust" and contrary to WTO rules.              

Such practices have "seriously" damaged the ability of Chinese firms to defend themselves and allowed the US to impose "abnormally high tariff rates" on them, the Ministry of Commerce (MOFCOM) said on Wednesday. The ministry urged the US to rectify the situation "promptly."   

MOFCOM`s comments came after the US Commerce Department decided Tuesday to levy import tariffs of 522 percent on Chinese cold-rolled steel, alleging that these products were sold in the US market below cost and with unfair subsidies.   

The US upheld its preliminary anti-dumping duties of 265.79 percent for Chinese cold-rolled steel imports, but increased the rate to 256.44 percent from 227.29 percent, Reuters reported on Wednesday. The original complaint was filed in July 2015 by US producers.   

Cold-rolled steel is primarily used in automotive body panels, appliances, shipping containers and construction.  

Chinese companies affected by the duties include Baosteel Group, Angang Group Hong Kong Holdings, and Benxi Iron and Steel (Group) Special Steel Co, according to Reuters.

In a statement e-mailed to the Global Times on Wednesday, Baosteel Group said that its operations are completely market-oriented and that the US ruling is unfair.

"The decision by the US government offers almost no room for Chinese cold-rolled flat steel exports in the US market because the duties will increase by over five-fold the import prices for the steel products," Wang Guoqing, research director at Beijing Lange Steel Information Research Center, told the Global Times on Wednesday.

The US is increasingly taking a protectionist stance over trade with China and trying to shut down its market to Chinese steel products, Wang noted, adding that the latest measures are quite "extreme."

The US and the EU are also reluctant to grant China market economy status (MES) because doing so would make it harder for them to impose anti-dumping duties on Chinese imports, she said.

Since 2015, the US has launched several trade remedy investigations into steel products from countries and regions including China, Brazil, India and South Korea, and is trying to shift the troubles in its own steel sector to overseas markets, said MOFCOM.

On April 26, US Steel Corp filed a trade complaint against big Chinese steel makers and distributors, trying to bar allegedly unfairly traded Chinese products from the US market.

China believes that the US` actions against steel imports from other countries runs contrary to the WTO principles of free trade and globalization, MOFCOM said.

China not to blame

There has been a rising number of anti-dumping measures against Chinese steel exports recently, amid overcapacity in the global market.

The troubles in the world steel sector have not only been caused by Chinese exports, experts said, noting that factors like the sluggish global economy and weak demand also matter.

Joint efforts are needed to address the issue and taking protectionist measures will not help tackle the challenges faced by the global markets, experts said, noting that while China does face overcapacity domestically, it is taking measures to deal with it.

The State Council, China`s cabinet, said Wednesday that China will cut its steel capacity by about 10 percent in the next two years.

The country is planning to transfer 10 million tons of steel capacity to Brazil and the capacity that will be transferred in the first phase will reach 3 million tons, domestic news portal jiemian.com reported Monday, citing Zhang Shengsheng, general manager of an investment company.

"In a bid to further reduce overcapacity, standards for domestic steel producers should be unified, including energy consumption, production technology, product quality and environmental protection," Wu Wenzhang, general manager of Shanghai-based consulting firm Steelhome, told the Global Times on Wednesday.

Due to the US` actions, Chinese steel producers will continue to expand their presence in other countries and regions in Southeast Asia, South America and Africa in the future, Wang said, noting that "domestic steel firms should not be in a hurry but should take steps gradually to seek growth there."  

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.