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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.

China`s coal output down 5.8% to 1.8 bln tons in H1

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

China`s coal output delivered a year on year drop of 5.8% to 1.79 billion tons in the first half of this year, according to figures released by the National Development and Reform Commission (NDRC).

In the first half of this year, China`s coal imports plunged 37.5% year on year to 99.87 million tons.

As of the end of Jun, coal storage at major ports of China shrank 16.4% to 39.67 million tons. Meanwhile, China`s national coal storage at major power plants stands at 65.41 million tons and will be available for 22 days by the end of Jun.

In the Jan-Jun period, total electricity consumption rose a meager of 1.3% to 2,662.4 terawatt hours, 4.1% lower than in the same period of 2014 and hit the lowest level since 1980.

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.

Private oil refineries get approval to import crude oil

Source: www.chinamining.org   Citation: Xinhua   Date: July 24, 2015

The government has given China`s private refineries more freedom to import crude oil, a move intended to further open up the State-dominated sector, the Ministry of Commerce (MOFCOM) said on Thursday.

The ministry specified the requirements for non-State companies that want to import oil, saying they must have annual refining capacity exceeding 2 million tons and meet national environmental standards.

They should also have storage capacity for at least 300,000 tons of crude. China is one of the world`s largest oil buyers, and nearly 60 percent of its petroleum is imported. Crude imports are dominated by State-run giants such as China Petrochemical Corp (Sinopec), China National Petroleum Corp (CNPC) and China National Offshore Oil Corp.

There are more than 20 qualified non-State importers, but they have limited quotas.

In August 2014, Xinjiang Guanghui Petroleum Co, a subsidiary of Guanghui Energy Co, secured government approval to import crude, the first private enterprise authorized to do so since 2008.

Besides imports, China is moving to open up the sector in various ways. For example, both Sinopec and CNPC have announced plans to allow more private investment in their assets.

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.

Chinese firm contracted to build 600 MW coal-fired power plant in Zimbabwe

Source: www.chinamining.org   Citation: Xinhua   Date: July 24, 2015

A Zimbabwean independent power producer on Thursday contracted China State Construction Engineering Corporation (CSCEC) to construct a 600-MW coal-fired power plant in the country`s northwestern region to ease its chronicle power shortages.

Construction of the phrase one of the Lusulu power plant, to begin in early 2016, will cost 1.1 billion U.S. dollars, according to the contract. CSCEC was awarded the engineering, procurement and construction (EPC) contract for what appears to be one of the largest power projects by value in Zimbabwe in recent years.

Chairman of Pan African Energy Resource Lusulu Power Stuart Perry told journalists at the signing ceremony witnessed by Finance Minister Patrick Chinamasa that the 600 MW is the first of four phases which will eventually add power generation capacity of Lusulu to 2000 MW.

He said the first phase, which will include construction of roads, transmission lines and related infrastructure, was scheduled for completion in the first half of 2019.

Finance Minister Patrick Chinamasa hailed the signing of the deal which he said will go a long way in addressing the infrastructure gap in power generation in the country.

He said the power project to be located in Binga in north west Zimbabwe will use surrounding coal concessions to fire the power plant and will feed its power onto the national grid with surplus being exported.

"The project is very important for the development of Binga as there will be huge infrastructure development in and around the plant," he said.

He also expressed hope that completion of the power project will not only boost availability of power in the country but result in a reduction in power tariffs.

Zimbabwe has faced perennial power shortages for over a decade owing to antiquated power plants. It currently produces 1,100 MW against demand of 2,200 MW and sometimes plugs the shortfall through imports from the region.

The country last year contracted a Chinese firm, Sino-Hydro to expand its second largest power plant, Kariba Power Station by 300 MW. The project is set for completion in 2017.

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 slide halted but analysts warn of worse to come

Source: www.chinamining.org   Citation: www.chinadaily.com.cn   Date: July 23, 2015

Gold stabilized on Tuesday after falling to its lowest level in more than five years as it hit a sixth day of declines on Monday.

Bullion for immediate delivery added as much as 1.06 percent to $1,108.09 an ounce on Tuesday and traded at $1,106.8 at 11 pm in Hong Kong, holding just above a five-year low. The precious metal had tumbled to $1,086.18 a day earlier, breaching the key psychological barrier of $1,100 an ounce.

Gold has been falling out of favor as the US dollar strengthened last week after US Federal Reserve (Fed) Chair Janet Yellen have reiterated that the US central bank was on track to raise rates later this year, said Kenix Lai, senior market analyst for currencies and interest rate trading at Bank of East Asia.

In Shanghai, around five tons of the metal were sold on the gold exchange within two minutes on Monday, in a market where the normal volume traded is 25 tons for the entire day, Australia and New Zealand Banking Group said in a note.

The sudden bout of selling across the Shanghai and New York markets on Monday and the rebound on Tuesday, Lai pointed out, had nothing to do with fundamentals.

As gold has generally been suppressed by the ongoing expectations of a stronger US dollar, as well as sluggish demand from the Chinese mainland and India, the world`s largest consumers of the metal, Lai believes the recent price slump could signal a "plunge in a volatile fashion" to $1,000 an ounce at the year-end.

"Despite today`s short-lived recovery, I think so far the good time to invest in gold has yet to arrive," noted Lai. "There is still going to be downward pressure. Price could head lower and is unlikely to rebound until the second half of next year."

Gold is seen as a safe investment and a store of value during times of economic uncertainty and high inflation. As inflation is heading nowhere and the promise of a third Greek bailout gives investors more confidence in the euro and the European economy, their desire for gold as a safe haven is fading, Lai told China Daily.

Lai`s views matched those of Christ Fund Securities research director Simon Lam Ka-hang, who is still bearish on gold and looking at $1,000 an ounce in the first quarter of next year. And his outlook is underpinned by the likely US Fed rate hike.

Meanwhile, Hong Kong jewelry retailers struggling with their weak performance in gold sales have their hopes pinned on the sliding price of the precious metal to boost sales.

Sales at Chow Tai Fook, the world`s biggest listed jeweler, fell 17 percent on-year in the three months to June 30, largely driven by a 12-percent decline in sales of gold products.

During the period, same-store sales of gold products in Hong Kong and Macao, where Chow Tai Fook stores were once a mecca for gold buyers, tumbled 25 percent.

Hong Kong-based jeweler Luk Fook Holdings also posted a 20-percent plunge in same-store gold sales in the two SARs for the quarter ended June 30, with the group`s overall same-store sales of gold products declining 18 percent during the period.

This came as the SAR in June saw a steep 10-percent drop in mainland visitors under the Individual Visit Scheme, following a 5-percent drop in arrivals in May. As mainland buyers are the major power behind gold purchases in Hong Kong, Lai said she could hardly expect a gold rush at the city`s jewelry stores.

Other commodities also advanced on Tuesday, with spot silver gaining 1.4 percent to $14.9115 an ounce, after declining as much as 2.3 percent on Monday. Platinum rose 1.16 percent to $989.4 an ounce after dropping on Monday to its lowest level since 2009.

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.