Related News

China 2014 coal output seen down 2.5 pct, first drop in a decade

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

China`s coal production is estimated to have fallen 2.5 percent in 2014, the first annual drop in more than a decade, hit by a war on pollution and government efforts to tackle a supply glut as demand from industry and the power sector weakens.

The forecast by the China Coal Industry Association comes after official data showed China produced 3.52 billion tonnes of coal in the first 11 months of 2014, down 2.1 percent, with mines under pressure to cut output in the second half of the year in a bid to prop up plunging prices.

The National Bureau of Statistics has yet to publish coal production data for December or the whole year. China officially produced 3.7 billion tonnes in 2013.

Last year, Chinese power output growth was the slowest since 1998 while steel production growth was also the weakest in more than three decades, aggravating a coal supply glut.

Zheng Nan, an analyst at Shenyin Wanguo Futures in Shanghai, said falling industrial and residential demand made a 2015 recovery unlikely.

"It will remain at such a low level before 2020 given that the central government has already set the tone to curb air pollution," he said.

China`s coal data is notoriously unreliable and often fails to take into account a vast amount of illicit, private production and consumption from poorly regulated industries. However, official data suggests that the last year-on-year drop in output was in 2000.

Production has more than doubled since then, causing chronic pollution problems in industrial regions as well as a surge of greenhouse gas emissions.

A decline in 2014 output supports a view that China is close to "peak coal" use, though the International Energy Agency said earlier this month that it expected Chinese consumption to continue rising until beyond 2020.

Some experts also warned it was too soon to say whether this represented a turning point.

Yuan Jiahai, professor at the North China Electric Power University, said shrinking exports and cooler summer weather in 2014 also contributed to the decline.

Jiang Zhimin, vice-president of the China National Coal Association, told state news agency Xinhua that he expected output to fall a further 2.5 percent in 2015.

Shenyin Wanguo Securities` Zheng said any decline this year would be limited, with the state keen to preserve jobs.

The government has already tried to push production cuts to support prices and also imposed import restrictions. But efforts to support prices in 2015 could be offset by a campaign to slash consumption in more regions.

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 December nickel ore, conc imports fall 62% on year to 2.48 million mt

Source: www.chinamining.org   Citation: Platts   Date: January 28, 2015

China`s imports of nickel ores and concentrates fell 61.7% year on year and 13.3% month on month to 2.48 million mt in December, latest data from the General Administration of Customs showed Tuesday, January 27.

Imports from China`s largest supplier, the Philippines, rose by 73.3% year on year to 2.41 million mt in December.

But the increase was outpaced by the 100% drop in imports from Indonesia, which was China`s largest nickel ore and concentrate supplier before it banned the exports of unprocessed ore from January 2014.

Analysts expect nickel ore and concentrate imports into China to continue falling in the next few months as shipments from the Philippines are affected due to monsoons in parts of Southeast Asia.

Shipments are expected to return to normal only after March. Nickel ore inventory at China`s five major ports of Tianjin, Rizhao, Lanshan, Lianyungang and Jingtang, fell by 504,000 mt week on week to 12.45 million mt as of January 23, data from Chinese metals research firm Shanghai Metals Market showed Tuesday.

For the full year 2014, China`s nickel ore and concentrate imports fell 33% year on year to 47.72 million mt.

Imports from the Philippines during 2014 rose 23.1% from 2013 to 36.4 million mt, while those from Indonesia dropped by 74.1% year on year to 10.64 million mt last year.

In contrast, China`s imports of ferronickel increased 45.2% year on year to 282,936 mt in 2014.

Users imported the ferroalloy to substitute nickel pig iron whose production is falling in China due to drop in nickel ore imports.

In December, imports of ferronickel fell 3.6% year on year to 27,818 mt.

Meanwhile, China`s unwrought non-alloy nickel imports totaled 129,979 mt in 2014, down 22.7% 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 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 2014 steel output grows at slowest rate since 1981

Source: www.chinamining.org   Citation: Reuters   Date: January 21, 2015

China`s steel production grew at its slowest rate in more than three decades in 2014 as a cooling economy in the world`s largest producer curbed demand and the government moved to tackle overcapacity and pollution.

The low growth rate suggests China`s authorities have had some success in efforts to lower production and close polluting plants, but analysts warned of possible upward revisions to the 2014 data, and still forecast a small rise in output in 2015.

"We still expect a marginal growth in steel production this year as Beijing has sped up approvals of infrastructure construction projects," said Sara Wang, an analyst with Masterlink Securities in Shanghai.

Output reached a record 822.7 million tonnes - about half of forecast global production - but was up just 0.9 percent on the previous year, the slowest growth rate since 1981, data from the National Bureau of Statistics (NBS) showed on Tuesday.

The world`s second-largest economy grew 7.4 percent in the whole of 2014, undershooting the government`s 7.5 percent target and marking the weakest expansion in 24 years.

Steel production has doubled in just eight years, with China driving its economy through the expansion of heavy industry, but this has led to severe overcapacity and hazardous pollution problems, particularly in northern regions.

In a move to improve air quality, Beijing has taken the toughest measures ever to order steel mills to curb production, while sharp falls in steel prices and high inventories have also forced some steel mills to rein in production.

The NBS originally reported 779 million tonnes of production for 2013, but the 2014 growth figures imply an upward revision to the 2013 data of nearly 5 percent to 815.4 million tonnes, and that monthly output figures from January to November 2014 have also been revised up by more than 1 percent, according to Reuters calculations.

Analysts cautioned that a similar revision could eventually be made to the 2014 figures.

Steel output in December jumped 7.6 percent to 68.09 million tonnes in December, the highest since August, and up 1.5 percent from a year ago, the NBS data showed.

However, daily rates stood at 2.196 million tonnes for the month, compared to an annual average of 2.254 million tonnes.

Steel output in China could be approaching its peak, the China Iron & Steel Association (CISA) said last week, and it urged producers to continue slashing excess capacity and improving efficiency.

Benchmark steel rebar futures on the Shanghai Futures Exchange tumbled 29 percent 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.

Deal for investors to trade gold via FTZ

Source: www.chinamining.org   Citation: Shanghai Daily   Date: January 19, 2015

The Shanghai Gold Exchange and the World Gold Council signed a deal yesterday to boost the trading of gold through the city`s pilot free trade zone.

Under the memorandum of understanding, the two parties will support the development of gold investment products and solutions for the industry and investors both regionally and globally, the WGC, a global gold industry association, said in a statement.

Global investors will be able to trade the bullion on an international board the Shanghai exchange set up in the FTZ last September and use its services such as storage, trusteeship, delivery, leasing and transit, the statement said.

"As the market shifts from West to East, the expansion of strong gold trading hubs in Asia will improve pricing, liquidity, transparency and efficiency, all of which will transform the landscape of the global gold market," said Aram Shishmanian, CEO of the WGC.

The Shanghai exchange has grown into the world`s largest market for physical gold and the partnership will help better integrate the China market with the world, said Shishmanian.

"It is exciting to partner with the world`s leading gold exchange as it allows us to bring our global expertise and insights to this enormous gold market full of potential," he said.

Xu Luode, chairman of the exchange, said he expects the alliance with the WGC to improve the link between China and the global gold industry.

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 issues 9.75 million mt of oil export quotas, first lot in 2015

Source: www.chinamining.org   Citation: Platts   Date: January 16, 2015

China this week issued the first round of oil product export quotas for 2015, with volumes totaling 9.75 million mt, industry sources said Wednesday, January 14.

This is significantly more than the roughly 8 million mt of quotas that were awarded in the first quarter of last year.

State-owned companies seek export quotas for some oil products from the government based on their requirements and can also request to have unused volumes from the quota of a particular oil product converted to another product.

Quotas are given out approximately every quarter and unused volumes can be rolled over to the following quarter.

The latest quotas were approved by the Ministry of Commerce and General Administration of Customs late last month, according to sources.

GASOIL QUOTA DROPS

Reflecting a slight improvement in domestic gasoil demand and continued robust domestic production of gasoline and jet fuel/kerosene, the quota for gasoil was the lowest of the three main transport fuels, at 1.36 million mt -- 28.4% lower than the quota awarded in Q1 last year.

This suggests the pace of gasoil exports may not pick up significantly from the fourth quarter of last year, when outflows over October and November averaged 290,000 mt/month. Data for December will be released next week.

The total gasoline export quota of 2.68 million mt was up 22.4% from the first batch last year while jet/kerosene volumes soared 59.4% over the same period to 5.61 million mt.

The surge in jet fuel/kerosene quotas likely reflects expectations that the domestic market will continue to be oversupplied, largely because output by refineries is growing at nearly 20% year on year while demand is rising by roughly 13%.

China National Petroleum Corp. and Sinopec were each awarded total oil product quotas of 4.8 million mt while China National Oil Corp. received 150,000 mt.

Sinopec only received 350,000 mt of gasoil quota in this round, versus the nearly 1 million mt awarded to CNPC.

This is surprising given that Sinopec`s trading arm Unipec is responsible for the bulk of China`s gasoil exports.

A source close to the matter said that export economics for gasoil are not that favorable so it is unlikely that Chinaoil, CNPC`s trading arm, will utilize all its gasoil export quotas.

GASOLINE EXPORTS MORE ATTRACTIVE

CNPC has received the right to export 2.06 million mt of gasoline, while Sinopec has received an export quota of 600,000 mt.

Export-oriented refinery Dalian West Pacific Petrochemical Corp., which is majority held by CNPC, has received a quota to export 700,000 mt of gasoline, 700,000 mt for jet/kerosene, 200,000 mt for gasoil and 100,000 mt for naphtha.

A source at Wepec noted that it is now more profitable to export gasoline than gasoil, mainly because the export price of gasoline is higher than current domestic prices, but the reverse is true for gasoil.

The refinery expects to export slightly more oil products in the current quarter than in Q4 last year.

This month, it will likely export 100,000 mt of gasoline, 108,000 mt of jet fuel and 40,000 mt of gasoil.

CNOOC, which only started exporting from its 240,000 b/d Huizhou refinery in southern Guangdong province in the second half of last year, received the go-ahead to export 20,000 mt of gasoline, 30,000 mt of gasoil and 100,000 mt of jet/kerosene.

The quotas this year cover 20 refineries.

Besides Huizhou, CNPC`s eight refineries are unchanged from last year while Sinopec has only awarded quotas to 11 refineries instead of 12 -- its 280,000 b/d Fujian joint venture refinery with Saudi Aramco and ExxonMobil is no longer on the list of facilities awarded export quotas.

Fujian was awarded 90,000 mt of jet/kerosene export quota last year but did not utilize any volumes.

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.

Sinopec releases report on its shale gas development

Source: www.chinamining.org   Citation: China Daily   Date: January 9, 2015

Development of clean fuel should itself be green and low-carbon

Sinopec Group, Asia`s largest oil and gas refiner, has released an environmental, social and governance report on its shale gas development, the first of its kind in China.

Jiao Fangzheng, Sinopec`s vice-president, said its shale gas exploration program is being developed based on three principles: operation security, water protection and community communication.

"The shale gas industry is being developed to ensure that the country`s energy consumption becomes cleaner and more sustainable. Thus, its development should be green and low-carbon," Jiao said.

According to the report, Sinopec`s major project is the Fuling shale gas block in southwestern Sichuan province, which uses water from the Wujiang River for hydraulic fracturing, also known as fracking. Officials insist that it has no effect on residential water use.

Fracturing is a technique by which rock is fractured by pressurized liquid to produce shale gas from shale formations.

"The fracturing fluid developed by Sinopec can also be reused," Jiao said.

The Fuling project, fully owned by Sinopec, started commercialized production in March last year. The company has built 2 billion cubic meters of production capacity at the site, enough to meet the natural gas consumption needs of 8 million residents for a year.

By Dec 22 the company had drilled 75 wells in the block and produced more than 1.14 billion cum of gas.

Officials say the project will reduce carbon emissions by 12 million metric tons annually, which equates to the planting of some 110million trees.

Jiao said the development not only offers environmental benefits but also contributes to the local economy.

"Fuling`s shale gas output has been created first and foremost for local residential use, with an expected daily supply of 3.6 million cubic meters of gas," he said.

Lyu Dapeng, a spokesman for Sinopec, said the company has established three joint ventures with local companies, and employed 25 local subcontractors on infrastructure construction and production contracts.

"We have tried our best to reduce the negative impact on local people`s lives," he said. "The operational hours are strictly controlled to cut noise, and the timetable for transporting water, for instance, is also scheduled to avoid raising dust."

To improve what the company claims were local mis-understandings about shale gas development, Sinopec has run an awareness campaign as well as created a system for handling any questions or worries people might have.

Long Shaobin, a local official from the nearest township, said: "We used to be the poorest township in the region with total fiscal revenue of 200,000 yuan ($32,000) in 2013. Because of the shale gas project, Sinopec has built a road to the township, which has offered us the chance to sell our produce to a wider market."

He said local people are selling ducks and oranges, for instance, while in the past many of the agricultural products were left to rot as it was difficult to transport them.

In addition to the 30-km road, Sinopec has built water-storage cellars for local people, Lyu said.

"Trust needs to be earned, and all these efforts are important in maintaining what has become a harmonious, mutual development."

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 ferrochrome market under pressure as import tax is scrapped

Source: www.chinamining.org   Citation: Platts   Date: January 4, 2015

The Chinese domestic ferrochrome market is expected to remain under pressure after the 1% import tax on ferrochrome with more than 4% carbon was scrapped.

Exporters lauded Beijing`s decision in December. The 1% import tax was factored into the selling prices quoted to Chinese buyers, they said previously.

Removal of the 1% import tax will give sellers higher price realization, they added.

The cancellation of the import tax, along with the cut in Q1 European ferrochrome term price announced in December, does not bode well for the Chinese domestic market in the near term, said an official with the raw material department of an east China stainless mill.

Chinese domestic ferrochrome prices have been trending downward since July 2013 amid ample supply and low demand.

By November 2014, domestic spot prices of high carbon ferrochrome (50% Cr) had fallen to Yuan 6,200-6,400/mt (equivalent to 76-79 cents/lb), down 10-11% since July 2013.

Sentiment turned bullish in late November and domestic prices rebounded to Yuan 6,350-6,500/mt in early December following production cuts in the country, which saw major Chinese stainless steelmakers lift their monthly purchase prices in December.

The bullishness proved short-lived, however, and steelmakers rolled over their January purchase prices from December.

"The overall weakness in the market will continue. Some tightness may continue in the market till March. But not many buyers are bullish now," a Hong Kong-based trader said.

The cancellation of the 1% import tax on imported ferrochrome indicated that Beijing was not supportive of further expansion of the domestic ferrochrome industry, market watchers said.

"China is moving towards decreasing ferrochrome manufacturing. The import tax cut is the first step towards that. China is not encouraging expansion and production in the ferroalloy industry," an official with an Indian ferrochrome producer said.

Other market participants agreed, noting that China had discouraged the export of ferroalloys as early as a decade ago when it lifted export taxes on various ferroalloys because the industry was considered to be adding to the pollution and was energy and resource intensive.

China imposes a 20% export tax on ferrochrome, though it has always been a net importer.

An official with the raw material department of another east China mill said that other than strict environmental standards in the ferrochrome industry, Beijing was also strict when it came to the approval of new projects.

China`s ferrochrome output and production capacity has increased over the years but other than stricter environmental standards, which is also faced by the rest of the ferroalloy sectors and the steel industry, the government was unlikely to introduce more policies to specifically curb expansion of the ferrochrome industry, Liu Yujing, a ferrochrome analyst with Beijing Antaike, said.

"There is no need for more macro policies to check the sector. The market is adjusting on its own," she said.

She noted that while China`s ferrochrome production capacity was around 7.5 million mt/year, only 4.5 million mt/year was estimated to be operating as at December.

The ferrochrome industry was essential to the steel industry, however, sources pointed out.

"The Chinese stainless steel industry is huge. Ferrochrome is still needed in the country," a Shanghai-based trader 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.

China`s natural gas output up 8.3% in Jan-Nov to 115.2 bln cbm

Source: www.chinamining.org   Citation: China Knowledge   Date: December 29, 2014

China saw its output of natural gas increase 8.3% year on year to 115.2 billion cubic meters in the first eleven months of this year, said the National Development and Reform Commission in a statement published on its website.

In the first eleven months, China`s natural gas imports grew 9.5% year on year to 51.9 billion cu m.

From Jan to Nov 2014, the consumption of natural gas amounted to 159.2 billion cu m, 7.4% more than it realized in the same period of 2013.

Last month, China is natural gas output hit 11.4 billion cu m, grew 9.3% from a year earlier, and its imports of natural gas grew 11.4% to 5.3 billion cu m.

The country consumed 16.5 billion cu m of natural gas in Nov, reflecting a year on year increase of 9.4%

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.