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China to cut steel exports in 2015 - CISA

Source: www.chinamining.org  Citation: Reuters  Date: October 10, 2014

China will likely decrease steel exports in 2015 following the cancellation this year of export incentives such as tax rebates, a China Iron Ore and Steel Association (CISA) official told Reuters on Monday.
    
"China does not plan to expand steel exports significantly. Next year we forecast that the Chinese exports will decrease compared with this year," Chi Jingdong, deputy secretary general of CISA told Reuters at the Worldsteel conference in Moscow.
    
China, capable of producing 1.1 billion tonnes of steel a year, boosted steel exports significantly in 2014, mainly due to the government`s preferential policies, including tax rebates for some steel products, Chi said.
    
China will produce around 830 million tonnes of steel this year and around the same amount next year, Chi added.
    
Battling with overproduction and the environmental impact of its steel industry, China is trying to reduce steel capacity by 100 million tonnes in the near future, including 80 million tonnes this year, Chi said.
    
Chinese steel exports surged by 10 million tonnes for the eight months from January to August this year to around 14.8 million tonnes, in part due to a recovery in global demand, he said.

"We think that it`s unrealistic to increase exports to resolve the issue of overcapacity in China," Chi said.
    
 "We think that tax rebate abolishment will have some impact on the enthusiasm of some Chinese steel companies and reduce their exports."
    
He added that the performance of Chinese steel mills will be better in the second half of this year compared to the first half because of decreasing production costs due to falling iron ore and coal prices.
    
"The profits of steel companies, however, are still small as steel prices are at a very low level," he said.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Rare earth products exchange in good operation: experts

Source: www.chinamining.org  Citation: Xinhua Agency  Date: October 08, 2014

China`s first rare earth exchange has amassed almost two billion yuan in trade since opening in March, a recent report has shown.
   
Gu Ming, general manager of the Baotou Rare Earth Products Exchange, said that by the end of September, more than 9,700 tonnes of rare earths have been traded, with the total turnover reaching 1.7 billion yuan (277 million US dollars).
   
"The latest data is sufficient proof that the exchange has been in good operation," Gu said.
   
Located in Baotou City, north China`s Inner Mongolia Autonomous Region, the exchange was initiated by Baotou Steel Rare Earth (Group) Hi-Tech Co. (BSRE), China`s leading rare earth producer, and another 12 firms and institutions with a registered capital of 120 million yuan (19.32 million U. S. dollars).
   
Zhang Zhong, general manager of BSRE, praised the exchange for its significance and influence in the industry, as its initiators could obtain 80 percent of China`s total rare earth ore and products each year respectively.
   
"Our annual export quota takes up 79 percent of the country`s total, illustrating the importance of the exchange," Zhang said.
   
Since its debut, the electronic trading platform has become a magnet for both domestic and foreign companies, with more than 90 involved in its trading, and its influence is still expanding, Gu said.
   
Yang Zhanfeng, dean of Baotou Research Institute of Rare Earths, said that the exchange has effectively regulated the industry of the precious ore and enhanced transparency, as companies all trade on the same platform with the same standard.
   
China is the world`s largest rare earth producer and exporter, accounting for more than 90 percent of the world`s supply. However, the country lacks pricing power in the global market and wild price swings of resources have had a negative effect on Chinese producers.
   
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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Bruised Rio Tinto rebuffs Glencore takeover approach

Source: www.chinamining.org  Citation: Reuters  Date: October 08, 2014

Rio Tinto has rejected a takeover approach from smaller rival Glencore Plc, snubbing a blockbuster deal that would have created a $160 billion (99.51 billion pound) mining and commodities trading giant.
   
Rio said on Tuesday that it was contacted about a potential deal in July, as the price of its most profitable product, iron ore, was heading towards five-year lows. Glencore confirmed later that it had made a telephone call to gauge interest in "some form of merger".
   
"Rio Tinto responded that it was not interested in pursuing these discussions," Glencore said in a statement.
   
Glencore`s billionaire chief executive Ivan Glasenberg, who sources say had made the approach personally, was turned down in August, and Rio said there had been no further contact.
   
"The Rio Tinto board, after consultation with its financial and legal advisers, concluded unanimously that a combination was not in the best interests of Rio Tinto`s shareholders," Rio Tinto said in a statement to the Australian stock exchange.
   
Market speculation about a potential Glencore approach for Rio has been simmering for weeks, fuelled by the sharp drop in iron ore, the material which accounts for more than 90 percent of Rio`s profits. Industry bankers say Glencore has recently talked openly about wanting to take over Rio, coveting its low-cost, high-quality iron ore.
   
The rebuff may have ended the prospect of a deal in the short term, and Glencore said in its statement that it was no longer actively considering a bid. But both sides failed to dampen questions about future acquisitions for Glencore`s Glasenberg, one of the industry`s most ambitious dealmakers -- including the potential for another run at Rio.
   
"This is the most obvious deal you could think of, especially if (Rio Chief Executive) Sam Walsh is on his way out. But the Xstrata experience shows it could take 3 years," one of the sources said, referring to Glencore`s protracted 15-month tussle to buy miner Xstrata. Walsh`s contract runs until 2015.
   
Tuesday`s statement bars Glencore from bidding for six months under UK takeover rules, but that could be overcome.
   
Several sources familiar with the matter said Glencore, if it were to come back, would likely wait for iron ore prices to drop further and for the ratio between Rio`s shares and its own
   
the likely currency for a deal -- to improve.
   
Rio`s Australian shares jumped as much as 4.7 percent to a 9-day high of A$60.28 in a weaker broader market .AXJO after the company issued the statement. Its London shares were up 2.1 percent at 3,057 pence in late afternoon trade, easing off earlier highs after Glencore`s statement.
   
Glencore was down 2.1 percent at just over 332 pence.
   
"At this stage, nothing is going to change materially in the next six months, unless the commodity price landscape changes dramatically," analyst Ben Davis at Liberum in London.
   
"The deal makes a lot of sense from a Glencore standpoint. They have a lack of long-term assets and are heavily leveraged. A big paper transaction like Rio could help."
   
CHINA`S BLESSING
   
Iron ore would fill a gap in Glencore`s range of commodities, where it already has strong positions in copper, nickel, zinc and coal. Merging with Rio would provide Glencore with instant scale in iron ore, boost its trading business, and give the indebted company access to Rio`s balance sheet.
   
The two could save about $500 million just by combining their neighbouring coal operations in Australia, Citi estimated.
   
But analysts and bankers have also outlined major hurdles to a deal, saying Rio Tinto shareholders would want a hefty premium, China would likely force a merged group to sell some copper and coal assets, and Rio`s conservative culture would clash with Glencore`s aggressively entrepreneurial DNA.
   
"It ticks a lot of boxes for Ivan, but I`m not so sure that it does so for Rio shareholders," one of Rio Tinto`s 30 largest investors said from London. "We`d prefer as much cash as we could get and you`d be looking at a pretty hefty premium to the current share price to get a deal."
   
Others agreed the premium or cash required to go straight to shareholders could be too much for Glencore`s own investors.
   
"I don`t think Glencore would go hostile and try and take out Rio. That would be a big bite," said Jason Beddow, managing director of Argo Investments, the sixth-largest holder of Rio`s Australian shares.
   
Rio disclosed the approach after Bloomberg reported that Glencore had talked to Rio`s top shareholder, Chinese state-owned Aluminum Corp of China (Chinalco) ALUMI.UL.
   
The report, citing people familiar with the situation, said talks with Chinalco took place after Rio`s rejection and that Glencore was testing the waters with other Rio shareholders -- studying obstacles as it weighed its next steps.
   
Any bid for Rio would need China`s blessing, as Chinalco owns 9.8 percent of the company, a stake it bought in February 2008 as it sought to block a $127 billion takeover bid from BHP Billiton. Chinalco is sitting on a big loss on its stake, bought for 60 pounds a share, or double Rio`s current London-listed price RIO.L.
   
A Chinalco spokesman in Beijing did not answer telephone calls on Tuesday, which was a public holiday in China.
   
IRON ORE HIT
   
Analysts at Bernstein calculate for every dollar fall in the price of iron ore, Rio`s assets lose $1.5 billion in value.
   
Rio has focused on slashing costs while expanding its iron ore output to what it calls "epic proportions", not shying away from the fact that it is largely dependent on steel growth in China, which is slowing.
   
"The board believes that the continued successful execution of Rio Tinto`s strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders," Rio Chairman Jan du Plessis said in a statement.
   
Unlike its bigger rivals, who have flagged they are going to stay away from chasing acquisitions for the foreseeable future following a string of soured deals, Glencore has been looking for bargains. Analysts have pointed to potential expansion in oil or agricultural commodities, as well as metals.
   
Following its $46 billion merger with Xstrata last year, it bought Chad-focused oil company Caracal Energy CRCL.L this year for about $1.3 billion and has been looking to buy BHP`s troubled Nickel West business.
   
With companies like Rio, BHP, Anglo American and Cliffs Natural Resources CLF.N looking to sell assets, there is plenty for Glencore to choose from without having to pay up for Rio, said Ric Ronge, a portfolio manager at Pengana Capital.
   
"Glencore, if it`s got the appetite, can probably find a situation where it can get a lot more bang for its buck in terms of finding something that`s more stressed and has a better fit with their existing asset spread," Ronge said.
   
"Obviously they`d like iron ore, but the question is at what price?"

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Trade zone`s new gold board `gets off to slow start`

Source: www.chinamining.org  Citation: China Daily  Date: September 29, 2014

Pedestrians walk past Shanghai Gold Exchange, Feb 21, 2010. The SGE has recently allowed foreign investors to invest directly into the city`s gold market.

One week after the Shanghai Gold Exchange started trading in the China (Shanghai) Pilot Free Trade Zone, transactions on the international board have been scant compared with international peers. But analysts said it is still too early to assess the board`s operations.
    
The SGE`s international board for the first time enables international investors to invest directly in China`s gold market, and it has been widely seen as part of the country`s effort to open its financial markets and gain more say in the pricing of the precious metal.
  
Three contracts are offered: 100 grams of bullion of 99.99 percent purity (iAu100g), 1 kg of the same purity (iAu9999) and 12.5-kg bars of 99.5 percent purity (iAu99.5).
    
According to exchange data, trading of the iAu9999 contract was the most active of the three, with transactions involving a little over 1,000 contracts on Thursday.
    
By contrast, the London Metal Exchange recorded 23,857 contracts of physical gold traded on the same day.
    
Analysts said that uncertainties over exchange rates and gold prices may have prompted the SGE`s international board members to hold cash.
    
All three contracts offered by the SGE`s international board are yuan-denominated and physical gold-backed, so investors need to take risks into account before they decide to trade in the exchange, said Yang Fei, an analyst at Seewonder Financial in Shanghai.
    
Xiao Shen, a Shanghai-based precious metals researcher with Dingjin Precious Metal, said: "Currently, only FTZ-registered members can trade, and they need to have accounts at banks registered in the free trade zone and authorized by the SGE to make transactions. The exchange is not yet open to individual traders, and many players have not entered the market. As more members are involved, the trading volumes may increase." Trading volumes and transaction values are benchmarks to evaluate an exchange`s activity.
    
Albert Cheng, World Gold Council managing director for the Far East, said that the board should aim to become a key trading platform in Asia.
    
Xiao said: "It would be unreasonable to expect a new exchange to become a big player in just a week and compete with other exchanges that have century-long histories. Let`s be patient to see how the SGE`s international board evolves."

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Higher prices boost domestic aluminum production

Source: www.chinamining.org  Citation: China Daily  Date: September 29, 2014

A worker checks aluminum rolls at a factory in Zouping county, East China`s Shandong province, Aug 20, 2014 when Chinese primary aluminum output crossed the 2 million ton mark.

Higher aluminum prices have prompted some Chinese smelters to abandon production cutbacks and are seen leading to restarts of other plants, chipping away at what was expected to be the first global deficit after years of oversupply.
    
A rally in London Metal Exchange futures contracts this year plus record premiums, or charges to obtain physical material, have sharply improved the financial stance of many smelters that were in the red last year.
    
"The profitability of the industry has dramatically improved this year, from losing money to being cash-positive ... so the next risk is to get restarts," Stephen Briggs, a metals strategist at BNP Paribas in London, said.
    
"Quite quickly the industry can get to a position where the deficit gets smaller."
    
The benchmark aluminum price on the LME CMAL3 surged 27 percent in the seven months to the end of August to an 18-month peak. It has since given up some of those gains but is still up about 10 percent so far this year.
    
The rally was partly driven by speculators, who expected the market to swing into deficit this year after many years of overproduction and surpluses.
    
The consensus median forecast of analysts polled by Reuters in July was for a surplus of 235,500 metric tons this year, moving to a deficit of 4,444 tons in 2015. A significant minority of analysts expected a deficit in both years.
    
Those deficit forecasts were partly based on moves by aluminum producers around the world in recent years to slash capacity by millions of tons, but analysts may have to rejig their estimates as some smelters start firing up again.
    
Chinese restarts are the main focus, since many high-cost smelters were hit hard by the price declines but have now moved into the black.
    
So far this year, some 1.3 million tons of annual capacity has gone back online in China, according to Richard Lu at consultancy AZ China in Beijing.
    
"We suppose there might be some small additional restarts in the northwest like Gansu province ... and the (restarts) number for the full year will be about 1.6 million tons per annum," he said.
    
Chinese primary aluminum output rose 8.8 percent year-on-year to 2.027 million tons in August, the first time it has broken above the 2 million mark, Commerzbank said in a note.
  
Most of the Chinese restarts have been based on promised government subsidies, Lu said.
    
So far, there have not been widespread moves to restart shut smelters outside of China, but continued firm prices and strong premiums could tempt some producers, analysts said.
    
Japanese aluminum premiums were set last week mostly at record highs of $420 a ton, up 70 percent from a year ago, while European and US premiums have been hovering at record levels.
    
The world`s biggest aluminum producer, United Company Rusal, said on Tuesday that about 40 percent of mothballed capacity could be restarted if prices were buoyant.
    
"I am tipping Rusal will bring a plant back soon, maybe even this year, but Alcoa won`t even think about it until the LME is at $2,700," Paul Adkins of AZ China said.
    
While closed smelters owned by Alcoa Inc would need an LME price of at least $2,500 a ton to make restarting profitable, Rusal could do so at a lower price, Adkins told the Reuters Global Base Metals Forum.
    
A Rusal spokeswoman, however, said the group would only consider restarting its smelters when the LME price reached $2,500-$2,700 per ton.
    
"Other key restart drivers will be the alumina cost and the Russian ruble against US dollar exchange rate," the spokeswoman said in an e-mail.
    
Despite possible restarts, Rusal forecasts a global market deficit of 1.2 million to 1.3 million tons next year, compared with a deficit of 1.5 million tons this year, First Deputy Chief Executive Vladislav Soloviev said on Tuesday.
    
LME benchmark aluminum was trading at around $1,960 a ton on Thursday.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s CITIC wins interim injunction in Mineralogy dispute

Source: www.chinamining.org  Citation: AFP  Date: September 28, 2014

Chinese-owned CITIC has won an interim injunction temporarily halting a bid by Australian tycoon Clive Palmer`s company Mineralogy to terminate its mining rights to a multi-billion dollar iron ore project.
    
 Mineralogy said Friday it had served a notice of termination to CITIC Pacific which gave it 21 days before it would no longer be allowed to mine at the Sino Iron project in Western Australia`s resource-rich Pilbara region.
    
 But the Supreme Court of Western Australia heard an application from CITIC in Australia later Friday, and issued an interim injunction against Mineralogy acting on the termination notice.
    
 "CITIC is pleased that the WA Supreme Court has granted an interim injunction preventing Mineralogy from terminating or suspending the Sino Iron Project," the company said in a statement.
    
 "The court has also restrained Mineralogy from issuing further termination or suspension notices. This ensures that operations at Sino Iron can continue without interruption."
    
Palmer is locked in a long-running legal dispute over royalties and port operations with CITIC Pacific relating to the Sino Iron project, which has been exporting quality iron ore concentrate.
    
The interim injunction is in place until December 18, when another hearing is scheduled.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China imports more gold for holiday; Indian demand set to climb

Source: www.chinamining.org  Citation: Reuters  Date: September 28, 2014

Top bullion consumer China has been importing more gold in September than in the previous month due to demand from retailers stocking up for the upcoming National Day holiday, market sources said.
    
Demand in India - the second biggest buyer of the metal - is also set to pick up as the festival and wedding season kicked off this week.
    
With gold trading close to a key psychological level of $1,200 an ounce, markets are keenly watching physical demand in Asia - the top consuming region - to see if it could lend support to prices.
    
"The physical volumes have been high this month compared to August. I would say imports could be at least 30 percent higher than last month," said a trader with one of the 15 importing banks in China.
    
From Oct. 1, Chinese markets will be closed for a week, and retails sales are expected to increase.
    
 Data on Thursday showed that China`s net gold imports from Hong Kong rose in August from a three-year low in July.
    
 Another trader said imports will remain elevated all through the fourth quarter due to seasonal demand.
    
 "Since the price is near $1,200, we have seen more purchases. If gold dips below that level, we can see a further increase," the trader said.
    
 Premiums on the Shanghai Gold Exchange were about $5-$6 an ounce on Friday, largely steady from last week.
    
 In India, an inauspicious phase called Shradh - a period for paying homage to ancestors - ended on Wednesday, giving way to a string of festivals.
    
 "Typically, as soon as Shradh is over, demand should kick in," said a dealer with one of the top bullion importing banks in India. "There is a feeling that gold prices will go further down, so some have chosen to wait a little longer before purchasing immediately."
    
 "With gold prices lower, there are expectations for good demand this time as we head to October."
    
The nine-day Hindu festival of Navratri began on Thursday, which will then be followed by Dussehra, Dhanteras and Diwali - all considered auspicious time periods to buy gold jewellery, coins or bars.
    
 Since the wedding season also kicks off around the same time, lasting all through the year, markets expect strong purchases. Gold forms an essential part of a bride`s dowry in Indian weddings.
    
 Monthly gold imports are set to rise by as much 50 percent from current levels while premiums could almost double to as high as $15 an ounce because of the festivities and wedding season, industry sources told Reuters earlier this month.
    
 Indian premiums are currently less than $10 an ounce. In other trading hubs such as Singapore, Hong Kong and Tokyo, premiums were largely unchanged from a week ago.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s October ex-refinery jet fuel prices to fall $33/mt from September: Platts estimates

Source: www.chinamining.org  Citation: Platts  Date: September 26, 2014

The ex-refinery jet fuel prices at which China National Offshore Oil Corporation, PetroChina and Sinopec will supply to China National Aviation Fuel are expected to fall for a fourth straight month in October by about Yuan 205.79/mt ($33.46/mt) from September, according to Platts estimates.
    
The three suppliers` reference ex-refinery jet fuel ceiling prices for October are expected at Yuan 6,599.96/mt, excluding a premium of Yuan 30/mt, according to Platts calculations.
    
The premium is negotiated between CNAF and its three suppliers on an annual basis.
    
The estimated drop reflects a month-on-month fall of Yuan 205.79/mt in the post-tax price of imported jet fuel to an average of Yuan 6,629.96/mt from August 25-September 24 -- the National Development and Reform Commission`s review period for September -- according to Platts calculations.
    
Under the current pricing mechanism established in July 2011, the NDRC sets a cap on ex-refinery jet fuel prices on the first day of every month based on the post-tax import price -- which comprises the Platts monthly average FOB Singapore jet fuel price, freight from Singapore to China and insurance at $2/barrel, VAT of 17% and port dues totaling Yuan 50/mt.
    
The ex-refinery prices are not allowed to exceed the post-tax import costs of jet fuel shipped from Singapore.
    
NDRC`s review period for setting the subsequent month`s ex-refinery jet fuel prices is from the 25th day of the previous month to the 24th day of the current month, unless these dates fall on a weekend or public holiday.
    
According to Platts data, over August 25-September 24 the Mean of Platts Singapore jet fuel/kerosene price averaged $113.63/b, or $897.69/mt, down $3.55/b from the previous review period, reflecting a $4.64/b drop in the benchmark ICE Brent crude futures in the review period to average $99.83/b.
    
Adding to that, the surplus barrels of jet fuel/kerosene from China and the Middle East continued to outweigh steady demand for the grade, locking the weak price in the region.
    
Jet fuel/kerosene exports from China over January-August increased 10.8% year on year to 6.45 million mt, according to latest data from the General Administration of Customs.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.