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China Feb coal output down 7.7 pct on supply clampdown

Source: www.chinamining.org   Citation: Reuters   Date: March 19, 2015

China produced 240 million tonnes of coal in holiday-shortened February, down 7.7 percent from a year ago, an industry website said on Wednesday, hurt by orchestrated output cuts in major regions.

Csteelnews.com, a website run by the official China Metallurgical News, said that output in the first two months of the year reached 530 million tonnes, down 4 percent compared to the same period of last year.

China has urged local authorities and coal enterprises to restrain output in a bid to support the sector, which has been suffering from persistent losses. It is also trying to cut supplies by closing small mines and curbing imports of low-grade coal.

Production last year fell for the first time in 14 years, dipping 2.5 percent to 3.87 billion tonnes. Consumption dropped 2.9 percent, hit by a slowing economy and a concerted effort to raise the share of non-fossil fuel energy, and few expect demand to recover this year.

At a recent session of parliament, China`s two biggest coal producing regions promised to implement policies to restrain output and restructure the sector this year.

Li Xiaopeng, governor of Shanxi, said his province would not approve any new mines until 2020, while Bao Manda, a planning official in Inner Mongolia, told Reuters that his region would also cap production at 1 billion tonnes a year over the next few years and promote downstream industries.

The National Development and Reform Commission held a meeting of top industry and company officials last week and said the utmost effort should be made to limit production and address the imbalance between supply and demand, and that authorities should continue to take action against illegal production.

In February, coal freight volumes fell to their lowest level since April 2010, dipping 32.3 percent on the year to 119.15 million tonnes, according to data from China`s railway ministry.

In its annual report to parliament earlier this month, China`s top regulator vowed to tackle pollution and impose further restrictions on coal consumption, but in a sign of the country`s difficult balancing act, it also promised to "turn around" a struggling sector facing huge losses.

Zhang Youxi, the chairman of leading producer Datong Coal Mine Group, has urged China to set a minimum price for coal in order to tackle industry losses, now believed to afflict more than 70 percent of China`s mining firms.

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 rally to six-week high over rising demand in China

Source: www.chinamining.org   Citation: Global Times   Date: March 2, 2015

Copper futures in Shanghai advanced considerably Friday thanks to bullish expectations of a rise in Chinese demand in the post-holiday period.

The most traded copper contract on the Shanghai Futures Exchange (SHFE), for May delivery, closed at 42,730 yuan ($6,816) per ton Friday, up 540 yuan or 1.28 percent from the previous day. At one point during trading, the contract surged above the psychologically important 43,000-yuan mark, representing a new high in six weeks and up nearly 10 percent from the low point registered at the end of January.

Meanwhile, three-month copper on the London Metal Exchange (LME) climbed 0.1 percent to close at $5,895 per ton Friday, after surging 2.2 percent Thursday and hitting a six-week high of $5,944. On a monthly basis, LME copper registered a remarkable 7 percent increase in February, the biggest monthly gain since September 2012.

"Copper prices are at a six-week high following strong US durable goods data and on speculation of more accommodating government policies in China to stimulate economic growth," the Australia and New Zealand Banking Group said in a research note sent to the Global Times.

Investors have been generally bullish, expecting a recovery in copper prices in the run-up to the seasonally strong second quarter.

Nevertheless, a report from Hongyuan Futures pointed out that factors supporting the price rebound in February are mainly temporary, as the copper market is expected to trend downward in the medium to long term.

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.

Iron ore futures slip amid subdued Chinese buying interest

Source: www.chinamining.org   Citation: Reuters   Date: February 12, 2015

Iron ore futures in China and Singapore edged lower on Thursday as weak Chinese buying interest kept spot prices near their lowest level in almost six years.

Most Chinese buyers replenishing iron ore stockpiles ahead of the week-long Lunar New Year holiday that starts on Feb. 18 may have already completed their purchases, traders said.

"Restocking is almost done and it`s too late to do any more now because it`s very difficult to get LCs (letters of credit) with the holidays approaching," said an iron ore trader in Shanghai.

Iron ore for May delivery on the Dalian Commodity Exchange was off 0.2 percent at 478 yuan ($77) a tonne by 0305 GMT. The March iron ore contract on the Singapore Exchange slipped 0.8 percent to $62.44 a tonne.

Benchmark 62-percent grade iron ore for immediate delivery to China`s Tianjin port .IO62-CNI=SI was unchanged at $62.20 a  tonne on Wednesday, according to The Steel Index. The price hit $61.10 last week, its lowest since May 2009.

"Weak steel prices in China have put intense pressure on steel mill margins - and the pain is being shared in raw material prices," Morgan Stanley said in a report, adding that an "unusually quiet period" ahead of Lunar New Year is a key contributor to the price weakness.

Morgan Stanley sees iron ore averaging at $79 a tonne this year and forecasts it would slip to $75 in 2016.

The price of iron ore has dropped a further 13 percent in 2015 after a 47-percent slide last year amid a glut, as big, low-cost miners lifted output to ship more to China where steel consumption shrank last year for the first time since 1981.

But the world`s top three iron ore miners - Vale, Rio Tinto and BHP Billiton - appear to be  entering the final phase of a fight to increase market share in China as massive expansions drive more high-cost rivals out of business.

    Rebar and iron ore prices at 0305 GMT

    Contract                                                      Last    Change   Pct Change

    SHFE REBAR MAY5                                  2477     -8.00        -0.32

    DALIAN IRON ORE DCE DCIO MAY5       478     -1.00        -0.21

    SGX IRON ORE FUTURES MAR              62.44     -0.50        -0.79

    THE STEEL INDEX 62 PCT INDEX           62.2     +0.00        +0.00

    METAL BULLETIN INDEX                         62.18     -0.20        -0.32

    Dalian iron ore and Shanghai rebar in yuan/tonne

    Index in dollars/tonne, show close for the previous trading day

    ($1 = 6.2453 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 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 likely to import more iron ore from Vale

Source: www.chinamining.org   Citation: China Daily   Date: February 15, 2015

Iron ore being unloaded at Rizhao Port, Shandong province. [Photo provided to China Daily]

New rules to facilitate entry of bulk carriers at the nation`s ports

China is likely to import more iron ore from Companhia Vale do Rio Doce, the Brazilian mining giant, to bolster its raw material reserves, after the Ministry of Transport issued a new rule permitting construction of wharves that can berth bulk carriers with a capacity of 400,000 deadweight tons.

The new rule, announced last month, said it is necessary for Chinese ports to keep up to date with the trend of ships getting larger and maintaining safe operations. The ministry previously suggested allowing bulk carriers larger than 300,000 DWT to call at Chinese ports as long as safety can be guaranteed.

Dong Liwan, a professor at Shanghai Maritime University, said the designed limit for larger bulk carriers is 403,944 DWT under the new rule, which is quite close to the mega ore carriers operated by Vale, indicating China is willing to deepen cooperation with the Brazilian company in mining commodity trade, as well as in increasing its iron ore reserves.

Due to opposition from Chinese shipping companies and associations, the Ministry of Transport had barred mega-bulk carriers from the nation`s ports since 2011, on security concerns and on grounds that such vessels can lead to monopoly and unfair market competition after the first 400,000 DWT bulk vessel docked at the Dalian port in December 2011.

"With the prices of commodities such as iron ore, coal and cotton remaining sluggish in the global market, it is reasonable for China to import more mining materials as strategic reserves to support the country`s ongoing industrial boom," said Dong.

Li Xinchuang, executive deputy secretary-general at the Beijing-based China Iron and Steel Association, said China`s iron ore imports are set to pierce the 1 billion-metric-ton mark for the first time this year.

Li said China`s iron ore imports are expected to grow 7.1 percent this year, thanks to domestic supplies falling by around 70 million tons.

"Where China sources its iron ore from will become more concentrated this year," said Li. "The percentage of China`s iron ore imports from by Australia and Brazil will expand to more than 80 percent this year from 77 percent in 2014."

Eager to reduce the hostility from Chinese shipping companies, Vale signed strategic and freight agreements with China`s State-owned COSCO Group and with China Merchants Group in September, in a push to increase its presence in China.

Vale also signed a strategic agreement with Shandong Shipping Corp in 2013 to hand over four 400,000 DWT bulk vessels to its Chinese counterpart, indicating the Brazilian company eventually found the dock to call in Chinese ports through this deal.

As many mining companies are seeking ways to cast off the negative impact caused by low commodity prices in global markets, Vale also signed a $500 million iron ore freight agreement with Shandong Shipping to diversify its business in China.

"Besides Dalian and Lianyungang, the ports of Qingdao, Tianjin, Ningbo-Zhoushan, Zhanjiang and Caofeidian all have the infrastructure in place to accept mega bulk carriers straight away," said Chen Yingming, executive vice-president of Shanghai-based China Port and Harbors Association.

"Meizhouwan port also announced plans for the construction of a 400,000 DWT berth last year," said Chen. "Apparently, the previous restrictive situation is close to an end."

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.

World gold demands fall 4% in 2014

Source: www.chinamining.org   Citation: Shanghai Daily   Date: February 13, 2015

A decline in jewelry consumption more than offset the growth in demand for gold investment and central bank buying and led to a fall in global gold consumption, the World Gold Council said yesterday.

Gold consumption worldwide fell 4 percent last year from 2013 to 3,924 tons, the WGC said in a report.

But the year ended strong as demand in the fourth quarter rose 6 percent year on year to 987 tons, helped by demand for jewelry and central bank buying.

The WGC expects China`s gold consumption to rise to between 900 and 1,000 tons this year, with jewelry contributing about 70 percent of the volume.

"2014 was a year of stabilization in the gold market, with annual gold demand down by just 4 percent after the record-breaking buying seen in 2013," said Marcus Grubb, managing director, investment strategy at the WGC.

"It was a standout year for Indian jewelry, despite government restrictions on gold imports. Meanwhile Chinese gold demand returned to levels last seen in 2011 and 2012."

Jewelry remained the biggest source of demand ¡ª 2,153 tons ¡ª for gold last year. But demand "unsurprisingly" fell 10 percent compared with the previous year due to the price-driven demand surge for jewelry in 2013, the WGC said.

India had its strongest year for jewelry demand since the WGC records began in 1995, up 8 percent last year to 662 tons, driven by weddings and festival buying despite government curbs on gold imports for most of the year.

Chinese jewelry demand dimmed 33 percent year on year, but it still represented the second-best year for jewelry demand in China since the WGC records began.

Investment demand rose 2 percent to 905 tons in 2014 from 885 tons in 2013.

Central bank demand climbed 17 percent from a year earlier to 477 tons as gold remained a valuable reserve to hold.

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 exports rise for record fifth month

Source: www.chinamining.org   Citation: China Daily USA   Date: February 12, 2015

Steel exports from China, the world`s largest producer, rose to a record for a fifth month as new tax rules for some shipments failed to slow sales.

The country shipped 10.29 million metric tons of steel products in January, a 52 percent rise from the same month of the previous year, according to data released by the customs administration in Beijing.

China`s outbound shipments surged 51 percent to a record 93.78 million tons in 2014 as producers sought overseas buyers while domestic construction slowed and the economy cooled.

The surging exports underscored the country`s record trade surplus last month caused by weakening domestic demand and plummeting commodity prices. Total imports fell by the most in five years amid a property downturn and a stall in manufacturing.

Steel shipments during this year are forecast to fall after the government canceled export-tax rebates for alloys that contain the chemical element boron as part of a drive to force the industry to consolidate.

"We expect exports to decline in February as the impact of the tax change filters through and as domestic crude steel production has fallen sharply in response to steel margins turning negative," Ivan Szpakowski, a Hong Kong-based commodity strategist at Citigroup Inc, wrote in a report on Monday. "Anecdotal reports are that exports were slower in late January and early February."

January shipments were stronger than expected because many supply contracts for the month were signed before the change and as mills and traders liquidated inventories, according to Szpakowski. February exports should decline while mills adjust production to export alternate products, he said.

Boron-alloyed steel accounted for more than 30 percent of last year`s shipments, according to Ian Roper, a commodity strategist at CLSA Ltd in Singapore.

China`s output grew at the slowest pace on record last year while steelmakers delayed cutting jobs and closing plants during the weakest year of economic expansion since 1990. The country`s output of 822.7 million tons was more than double that of the combined next four largest producers, Japan, the United States, India and South Korea, according to statistics from the World Steel Association.

Iron ore imports fell 9.5 percent from record in December to 78.57 million tons last month, the customs agency said.

The country will continue to phase out overcapacity in its steel industry, which can produce 1.16 billion tons, the Ministry of Industry and Information Technology said last Thursday.

Domestic steel consumption shrank 3.4 percent to 738.3 million tons last year, the China Iron & Steel Association estimates. That was the first demand contraction since the 1990s, according to Sanford C. Bernstein & Co.

Steel reinforcement-bar, used in construction and traded on the Shanghai Futures Exchange, fell 0.8 percent to 2,477 yuan ($396) a ton on Monday. Prices are down 28 percent in the last 12 months.

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.

Large S China Sea gas field explored

Source: www.chinamining.org   Citation: Xinhua   Date: February 11, 2015

Over 100 billion cubic meters of natural gas has been discovered at the Lingshui 17-2 gas field in the South China Sea, China`s largest producer of offshore oil and gas announced on Monday.

The China National Offshore Oil Corporation (CNOOC) said the Ministry of Land and Resource has approved Lingshui 17-2 as a large-scale gasfield.

The company`s deepwater drilling rig CNOOC 981 discovered Lingshui 17-2, the country`s first self-support deepwater gas field, in September 2014.

Located 150 km south of Hainan Island, Lingshui 17-2`s average operational depth is 1,500 meters below the sea surface, according to the CNOOC.

Xie Yuhong, a manager with CNOOC, said the approved gas reserves of Lingshui 17-2 will help the corporation build a gas trunk line to connect other gas fields in the South China Sea, so as to meet the huge gas demand of southern provinces, Hong Kong and Macao.

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 set commercial crude oil reserve inventory

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

China will set a minimum inventory level for commercial crude oil to keep the domestic oil market stable, according to the country`s top economic planner on Wednesday.

All crude oil refineries must keep their crude oil inventories above 15 days` average processing level, and no less than 10 days` deposits if international crude oil prices exceed 130 US dollars per barrel, according to a guideline issued by the National Development and Reform Commission (NDRC).

Refineries should meet the minimum inventory level within a year, while the deadline for enterprises with limited stock capacity is three years, according to the guideline.

The new rule aims to address short term crude oil shortages and brace against international market fluctuation. Commercial crude oil reserves will be held in case of natural disasters or emergencies, it said.

China`s commercial crude oil stocks were down 3.89 percent at the end of December from a month before, while stocks of refined oil products dropped 4.02 percent.

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.