Related News

China`s imports of iron ore shrink, steel exports surge

Source: www.chinamining.org   Citation: Bloomberg   Date: July 14, 2015

Iron ore imports by China shrank in the first six months of the year, highlighting weakness in demand in the world`s largest buyer as mills sold a record amount of production overseas amid a domestic glut.

Inbound cargoes of iron ore totalled 452.9 million metric tons between January and June, 0.9 per cent lower than the same period a year earlier, according to customs agency figures released on Monday. Overseas sales of steel products surged 28 per cent to 52.4 million tons in the six months, the agency said.

The stagnating trade in iron ore and simultaneous jump in steel-product exports show the extent of the slowdown in China`s steel industry, which is grappling with a property slump, overcapacity and losses. Benchmark iron ore prices collapsed last week to the lowest level since at least 2009, while steel rebar sank to a multiyear low in China. Rio Tinto Group said on Monday that iron ore had declined to a so-called new-normal level, which may persist through to 2020.

"China`s iron ore imports shrank in the first half, indicating that the country`s steel consumption obviously peaked last year," Xu Xiangchun, chief analyst at Mysteel Research, said by phone from Beijing on Monday. "Mills won`t be able to sustain losses at the current level and will gradually reduce production, and reduce their need for iron ore."

In June, iron ore imports were 74.96 million tons compared with 70.87 million tons in May, the agency said. Steel-product exports were 8.89 million tons in June from 9.2 million tons the month before, according to the agency.

While iron ore market conditions have changed, fundamentals remain robust, Michael Gollschewski, managing director of Rio`s Pilbara mines, said in a presentation on Monday. The London- based company, Australia`s largest shipper, declined to offer precise figures or define its "new normal" closely. Its shares in London traded 1 percent higher at 12.13pm local time.

Iron ore imports by China are expected to pick up this month and in August, Citigroup said in a report on Monday, citing increased shipments in June from Australia and Brazil, the world`s two biggest suppliers of seaborne ore.

The latest gauge of China`s slowdown will come on Wednesday, when official data on gross domestic product in the second quarter will be issued. The second-biggest economy expanded 6.8 per cent from a year earlier in the period, according to the median estimate of economists surveyed by Bloomberg. That compares with 7 per cent in the first quarter.

Iron ore with 62 per cent content delivered to Qingdao rose 0.4 per cent to $US50.30 a dry ton on Monday, according to Metal Bulletin Ltd. The price sank to $US44.59 on Wednesday, the lowest for data going back to May 2009. Spot rebar fell to 2102 yuan ($339) a ton on Thursday, the lowest level since at least 2003.

Baoshan Iron & Steel Co lowered its hot-rolled steel prices by 200 yuan a ton as of July 10, according to a company statement on Monday. That`s the second reduction in a month by China`s biggest publicly traded mill.

Prospects for an expanding glut and declining demand will worsen the outlook for Asia`s steel industry, Moody`s Investors Service said in a statement on Monday. Earnings of Chinese steelmakers will fall in the next 12 months as the real estate, infrastructure and manufacturing sectors weaken, Moody`s 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 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.

Bidding opens for Xinjiang oil and gas blocks

Source: www.chinamining.org   Citation: China Daily   Date: July 09, 2015

Northwestern China`s Xinjiang Uygur autonomous region launched bidding on Tuesday for six oil and gas blocks to private enterprises, a move that may end the monopoly of State-owned enterprises in oil and gas exploration, industry insiders said.

The bidding extends beyond State-owned energy giants to qualified Chinese private bidders with net assets of more than 1 billion yuan ($162 million), the Ministry of Land and Resources said in a statement on Tuesday.

The ministry announced that it had decided to transfer oil and gas exploration blocks in Xinjiang through competitive bidding, aiming to expand investment in oil and gas exploration and exploitation and further diversify investment entities in the upstream of the oil and gas industry.

"Public bidding is the first step toward the country`s reform of oil and gas exploration and exploitation, and will likely break the domination of the State-owned oil giants in the upstream of the industry," said Wang Kun, director of the ministry`s geological exploration department.

"China`s oil and gas exploration market has long been closed, compared to the copper ore and iron ore sectors.

"Outsiders can`t come in, while insiders are unwilling to invest for some reason," he said, adding that this has resulted in a slowdown in the development of oil and gas exploration.

Four State-owned oil companies-China National Petroleum Corp, China Petrochemical Corp, China National Offshore Oil Corporation and Yanchang Petroleum Group-are qualified to engage in oil and gas exploration.

China is seeking to reform oil and gas exploration and is encouraging more competition in the sector by inviting privately owned companies.

Resource-rich Xinjiang is the pilot region to usher in reform for private enterprises to participate in the upstream and downstream oil and gas exploration and development.

"Xinjiang is the center of the reform because it is where growth in oil and gas exploration is going to come from. Once the upstream business has been opened, the effects of the reform will spread to mid and down stream businesses," said Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University.

He said that the reform process will be further accelerated this year with more capital entering the sector.

Xinjiang had proven oil reserves of 5.6 billion tons and gas reserves of 1.4 trillion cubic meters by the end of 2014, according to the annual energy report released by the regional development and reform commission.

These figures both rank first in China, according to the report

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.

CNOOC`s new production to lift nation`s crude oil output from last year`s record

Source: www.chinamining.org   Citation: Reuters   Date: July 06, 2015

China`s crude oil output looks set to rise this year from a record in 2014 as new production from third-largest producer CNOOC helps to counter reductions from its two bigger rivals.

Output growth from China would add to a global glut even as exporters such as the Organization of the Petroleum Exporting Countries (OPEC) and Russia produce at near record highs and US shale producers keep ramping up output.

With the global oversupply as much as 2.6 million barrels per day (bpd), international crude prices have been nearly cut in half over the past year.

While there is no official Chinese production outlook, information from the biggest State oil companies indicates the nation`s output will rise slightly in 2015, largely due to increased production from CNOOC Ltd, the listed unit of State-owned China National Offshore Oil Corporation.

"What we have spent in the last few years has laid the foundation for the production growth this year," said an employee with CNOOC`s investor relations department who asked to remain unnamed. CNOOC spent 107 billion yuan ($17 billion) on capital expenditures in 2014.

Despite recent cost cuts, CNOOC has said it has already added at least 40,000 bpd of crude output this year. And it aims to increase daily domestic oil and gas output in China by at least 135,000 barrels of oil equivalent by the end of 2015, according the company`s 2015 outlook.

China raised its output in the first five months of this year by 1.8 percent from a year ago to 4.25 million bpd, compared with growth of just 0.1 percent over the same period in 2014.

In 2014, China produced an annual record 4.2 million bpd.

China`s two largest producers, PetroChina and Sinopec Corp, have both announced cuts. PetroChina plans to shrink its worldwide output by 1.5-1.6 percent in 2015, about 40,000 bpd, with more than 70 percent of the cuts to come in China.

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 lift ban on entry of miner Vale`s mega-ships

Source: www.chinamining.org   Citation: Reuters   Date: July 03, 2015

China said on Friday it will allow 400,000-deadweight tonne ships to dock at its ports, officially ending a more than three-year ban that had effectively shut out Brazilian miner Vale SA`s giant vessels.

Four domestic ports - Qingdao, Dalian, Tangshan Caofeidian and Ningbo - will be allowed to receive the carriers after they meet technical standards, China`s state planner, the National Development & Reform Commission, said in a joint statement with the Ministry of Transport.

Vale`s Valexmax mega-ships, which were designed to cut the costs of transporting iron ore to China, were banned by Beijing in early 2012 on safety concerns. The ban stalled Vale`s $4 billion strategy in China, the world`s biggest market for the commodity.

A spokeswoman for Vale declined to comment on the rule change.

Signs of a thaw began appearing last September after Vale signed a deal to sell and lease back ships from China Ocean Shipping Co (COSCO), the country`s largest shipping conglomerate.

China in February issued ship design guidelines recognising ships of 400,000 dwt. Ports that want to receive Valemaxes will be able to apply for permission if they meet these standards, the NDRC said.

A Valemax previously owned by the Brazilian firm anchored at Qingdao`s Dongjiakou port this week, Reuters mapping data showed. The Yuan Zhuo Hai is now owned by China Ore Shipping, a Cosco joint venture, which it bought from Vale in May.

The ability of Valemaxes to take cargoes directly to China and cut costs, by $4-6 a tonne, comes at a crucial time for the firm, with iron ore prices struggling around their lowest since 2009 due to a global supply glut.

While the price collapse has driven higher-cost miners out of the market and increased the market share of giant producers, higher freight charges and longer delivery times means that Vale has not benefited as much as Australian rivals such as Rio Tinto and BHP Billiton .

Australia alone supplied 241.7 million tonnes of iron ore to China in the first five months of the year, up 14.8 percent compared to last year and amounting to almost 64 percent of the total. Brazil supplied 70.89 million tonnes, or 18.7 percent.

Spot prices for ore delivered into Tianjin port dropped 5.3 percent on Thursday to $55.8 per tonne, the sixth consecutive daily decline and its lowest rate since April 23.

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 demand for Australian thermal coal down 31% on year in fiscal 2015

Source: www.chinamining.org   Citation: Platts   Date: July 01, 2015

China`s intake of thermal coal shipments from countries including Australia and Indonesia is forecast at 157 million mt for the fiscal year ended June 2015, representing a 31% decrease on traded volumes of 229 million mt in the preceding fiscal year period, said the Australian government in a report Tuesday.

"China`s imports [of thermal coal] are forecast to decline by 31% to 157 million [metric] tons in 2015, before recovering slightly to 160 million tons in 2016," said Canberra`s Office of the Chief Economist in a report on Australia`s resources and energy sectors.

"Over the remainder of 2015 and 2016, China`s import growth will continue to be challenged by slowing economic growth, strong hydroelectric output and measures to support the domestic industry," said the report`s section on thermal coal written by economist Kate Penney.

Chinese government attempts to improve air quality in the country`s cities is also impacting demand for imported thermal coal, said the report.

Spot prices for Australian thermal coal are expected to remain under pressure for the rest of 2015 and into 2016 because industry response to overproduction and overcapacity to date has been insufficient to reduce an overhang of supply in the market, said the report.

"However, the supply response has been delayed because of limitations to changing infrastructure supply services, the depreciation of the US dollar relative to the currencies of other major producers, and lower energy prices," said Penney.

JAPAN, KOREA

Steady demand from other key markets including Japan, South Korea and Taiwan in the past fiscal year helped support seaborne-traded volumes of Australian thermal coal which increased by 3.2% to 201 million metric tons in the 2014-15 fiscal year.

"Despite higher volumes, the value of these exports declined by an estimated 7% to A$15.6 billion ($12 billion) because of lower prices," said the report, and adding that Australia`s thermal coal exports for the 2015-2016 fiscal year are likely to be 202 million mt.

Japan`s imports of Australian thermal coal have remained steady in the absence of nuclear power generation and uncertainty over the restart of some nuclear power reactor units.

This uncertainty is likely to support Japan`s thermal coal imports intake at around 148 million mt in the 2015 fiscal year, and 145 million mt in the 2016 fiscal year, said the report.

The Office of the Chief Economist is forecasting a price of about $62/mt FOB Newcastle basis 6,322 kcal/kg GAR for Australian thermal coal sold to Japanese power utilities under year-long term contracts with an April 1, 2016 start date, an 8.5% decline on April 2015`s benchmark price of $67.80/mt.

"In 2015-16, Australia`s thermal coal production is forecast to increase by 1.4% to 249 million mt," said the report.

South Korea`s recent publication of its 7th Power Generation Master Plan suggests some shift away by Seoul from coal-fired power generation over emissions reduction concerns, but the introduction of an import tax for coal is reducing the competitiveness of low calorific value thermal coal, said the report.

South Korea`s imports of thermal coal are expected to rise by 2% between 2015 and 2016 to 102 million mt, said the report.

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 10 nonferrous metal output up 8.74% in Jan-May to 20.7 mln tons

Source: www.chinamining.org   Citation: China Knowledge   Date: June 30, 2015

The combined output of the ten nonferrous metals gained 8.74% year on year to 20.7 million tons in the Jan-May period, according to the latest statistics released by the China Nonferrous Metals Industry Association.

The output of refined copper rose 9.51% year on year to 30.86 million tons in the five-month period, and the output of primary aluminum saw an increment of 10.25% year on year to 12.82 million tons.

Meanwhile, the output of lead edged down 1.19% year on year to 1.67 million tons in the period, and the output of zinc went up 13.39% from a year earlier to 2.51 million tons in the first five months.

In the month of May 2015, the country`s average daily output of 10 nonferrous metal products hit 139,800 tons, 11.26% higher than in the corresponding period of last 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 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.

Copper futures rise on stabilizing Chinese manufacturing data

Source: www.chinamining.org   Citation: Reuters   Date: June 29, 2015

Shanghai copper futures inched up Friday as China`s factory activity showed signs of stabilizing in June, helping to boost investor confidence.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE), for August delivery, closed at 42,300 yuan ($6,815) per ton Friday, up 330 yuan from Thursday. A total of 259,030 lots changed hands Friday, 53,460 fewer than on the previous trading day. The August contract rose 0.95 percent for the week.

The benchmark three-month copper contract on the London Metal Exchange closed at $5,762 a ton Friday, compared with $5,761.50 a ton Thursday.

"Metals were largely down. The removal of a cap on lending by commercial banks in China saw metals such as copper supported in Asian trade. However risk aversion in European hours saw copper give up all those gains, and more," according to a note sent to the Global Times Friday by ANZ Banking Group.

China`s manufacturing sector showed signs of stabilizing as the latest HSBC survey of manufacturers issued Tuesday gave a preliminary reading for June of 49.6, it highest in three months.

London copper was on track for its first weekly gain since mid-May Friday, which was mainly supported by early signs that Chinese stimulus measures may support the market and offset the impact of a seasonal slowdown in demand, Reuters reported Friday.

"Although the dollar has been strong, copper prices have been relatively stable. That suggests that people are becoming more optimistic," Jonathan Barratt, chief investment officer at Sydney`s Ayers Alliance, told Reuters.

Traders said buyers in China domestic market have paid the highest premiums last week for spot refined copper since January as supplies fell this month and demand rose from makers of copper rods, tubes and cable, Reuters reported Friday.

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 further tighten coal quality controls on 1 July

Source: www.chinamining.org   Citation: EconoTimes   Date: June 25, 2015

China`s move to tighten coal quality, effective 1 January 2015, led to a significant decline in China`s coal imports in Q1.

Coal imports consumed by the domestic market were limited to coal with ash content below 40% and sulphur content below 3%. Testing at ports initially took 15 days, resulting in a cargo pile-up. Due to these restrictions, China`s Q1-2015 imports from Indonesia fell 47% y/y to 19mt, the lowest for a quarter since Q1-2011.

Indonesia was China`s largest coal supplier (106mt) in 2014. China is tightening its coal quality controls further, with effect from 1 July 2015.

The stricter criteria now extend to all saleable coal - either domestically produced or imported - in the China market, with the new specifications even stricter than those enforced on 1 January.

Coal quality is likely to be tested at ports and at the point of utilization, namely at power utilities and chemical industries. We see this as a broad-based approach to ease China`s pollution woes and reduce carbon emissions, rather than an effort to further restrict coal import volumes to rebalance the domestic oversupplied market.

As such, while shipment delays are expected, China`s imports from Indonesia are not expected to decline significantly as a result of stricter coal quality control.

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.