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China magnesium: Export offers track steady domestic prices

Source: www.chinamining.org  Citation: Platts  Date: August 22, 2014

Spot export offers for Chinese magnesium ingot on a FOB basis tracked steady domestic prices, while the overseas physical buying interest has remained lacking, industry sources said Thursday.
    
Most spot offers on a FOB basis were heard steady at $2,440-2,520/mt, unchanged from last week.
    
Industry sources generally agreed that most tradable offers were below $2,500/mt.
    
Platts kept its weekly magnesium ingot (minimum 99.8%) price assessment steady at $2,450-2,480/mt FOB China Thursday, unchanged from last week.
    
The Chinese magnesium diecast alloy price assessment was also maintained at $2,730-2,780/mt FOB China Thursday, unchanged from last week.
    
"The overseas export trade remains quiet. European buyers are still staying away from the market, while some Japanese traders are still on summer vacation. There`s no movement in the export offers," said a south China-based trader.
    
He added that he was keeping his offers steady around $2,470/mt, unchanged from last week.
    
"I am hearing offers as low as $2,440/mt in the market but I have not heard any done deal at this level," he said.
    
A north China-based producer, who shared similar view, said: "My export offers are still at $2,520/mt and the overseas demand is still lacking."
    
He added that Shanxi offers were generally higher than those from Shaanxi as Shanxi had higher production costs.
    
The northern Chinese producer said his domestic offers had remained steady at Yuan 14,400-14,500/mt ($2,341-2,357/mt), ex-plant in Shaanxi.
    
"My domestic trade is doing better than exports. I have seen a slight pickup in domestic buying inquiries. Domestic prices have been falling and appeared to be steady recently. Some end-users are making inquiries. However, I have not seen a significant increase in trade to lift prices yet," added the northwestern Chinese producer.
    
Domestic offer in Shanxi were heard around Yuan 14,900/mt ex-works, unchanged from last week.
    
Sources added that the slightly stronger yuan against the dollar seen recently had offset the impact on the persisting weakness in the overseas demand.
    
A stronger yuan would mean higher export offers in dollar, while weak demand dampened offers.
    
The dollar was trading at Yuan 6.1632 Thursday but had been at the Yuan 6.15 level for the previous week till Wednesday. Two weeks ago, the dollar was trading at the Yuan 6.16 level.
    
Meanwhile, production cuts continued among Chinese ferrosilicon producers but market participants said they did not have problems securing material due to slow demand.
    
Ferrosilicon is a feedstock for magnesium ingot production.
    
Chinese domestic ferrosilicon spot prices at Tianjin port were pegged at Yuan 6,200-6,300/mt Thursday, unchanged week on week.

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 fuels world steel output to climb 1.7%

Source: www.chinamining.org  Citation: AFP  Date: August 22, 2014

GLOBAL steel production rose 1.7 percent in July over 12 months, driven mainly by growth in Chinese output, the World Steel Association said yesterday.
    
Steel is used in most industrial processes and is an important indicator of economic activity.
    
The latest data showed that steel output reached 136.8 million tons last month.
    
Production rose by 1.5 percent in China which accounts for half of all steel made worldwide.
    
Ukraine, which has seen several months of intense fighting between pro-Russian rebels and government troops in its restive eastern region, posted a net loss in production, down 11.7 percent to 2.5 million tons.
    
Most of the steel produced in Ukraine is made in the east of the country which is the focus of unrest by pro-Russia separatists.
    
Output by Russia rose by 8.1 percent to 6.2 million tons.
    
Production was stable in Japan at 9.3 million tons but grew 1.5 percent in South Korea to 68.3 million tons and India`s output grew 1.7 percent to 7 million tons.
    
Output fell 2 percent across the European Union to 13.3 million tons, although Germany`s production rose 1.5 percent to 3.4 million tons and France`s also increased 1.6 percent to 1.4 million tons.
    
Italy`s annual production fell 3.6 percent to 2 million tons.
    
The United States saw an increase in steel production, growing 2.3 percent to 7.6 million tons.

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 Zijin Mining looks to purchase gold projects in Africa

Source: www.chinamining.org  Citation: www.mining-technology.com  Date: August 20, 2014

China`s largest gold miner Zijin Mining is planning to spend $1.3bn on buying further assets in Africa this year, to meet its production targets.

Zijin Mining CEO Wang Jianhua was quoted by Bloomberg as saying: "We are seeing some buying opportunities in Africa and are examining related infrastructure development and geopolitical risks there.

"What we are interested in buying are those on the world gold mining belt with big sizes."

The company is eyeing gold projects with more than 100t of metal reserves and copper projects containing more than one million tonnes of reserves.

"Zijinshan will undergo a transitory period towards copper mining, but the profitability of copper does not necessarily have to be less than that of gold."

Zijin Mining will also seek help from overseas firms to finance the acquisitions. The decision came after the comapny`s Zijinshan mine, which produces 32% of its total gold output, reported a 4.2% fall year-on-year in the first half of this year.

When compared to the 2012 first half results, the company`s output fell by 38%, due to the declining gold content in the ore from Zijinshan mine.

Jianhua was quoted by South China Morning Post as saying: "With this in mind, we will focus our effort in the second half on technological and internal management improvement, as well as developing new large-scale projects.

"In the next few years, Zijinshan will undergo a transitory period towards copper mining, but the profitability of copper does not necessarily have to be less than that of gold. The key is a good understanding of the resources."

Despite a fall in the production rate, the company has not changed its annual gold output target of 34t from its own mines and the annual copper output of 140,000t.

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 aluminum: ADC12 spot offers slip on thin trade, weak buying

Source: www.chinamining.org  Citation: Platts  Date: August 20, 2014

Offers for Chinese domestic spot aluminum alloy ADC12 slipped Tuesday in thin trade with little physical buying interest during the current summer lull, industry sources said.
    
Platts lowered its weekly China domestic ADC12 price assessment to Yuan 15,000-15,500/mt ($2,442-2,524/mt) ex-works Tuesday, from Yuan 15,200-15,700/mt last week.
    
A southwest China-based producer, who heard most market indications around Yuan 15,000/mt, said: "The weather is hot in summer, forcing some diecasting plants to lower their production rates or to shut their operations to avoid high temperatures."
    
An east China-based producer, however, said: "The weather is not as hot as previous years. In fact, it is quite cool. Some diecasting plants who still have orders to fulfill will continue to operate during the summer."
    
The eastern China-based producer indicated his primary aluminum ingot-fed ADC12 at Yuan 15,800/mt.
    
"The scrap-fed ones are Yuan 300-500/mt lower [than my primary aluminum-fed ADC12]," this eastern Chinese producer added.
    
An east China-based diecaster, who bought a small tonnage around Yuan 15,000/mt from a trader, said the company would skip the summer break as it had to fulfill orders.
    
Another east China-based producer said it was quite usual for the domestic market to be quiet during the middle of the month as end-users would make their purchases at the start and the end of the month.
    
This second eastern Chinese producer lowered his domestic offers to Yuan 15,450/mt, down Yuan 50/mt from last week due to the lack of buying interest.
    
Sources said rangebound aluminum ingot prices had also dampened ADC12 offers.
    
Chinese domestic spot aluminum ingot was priced around Yuan 14,020/mt Tuesday, compared with Yuan 13,940/mt Monday and Yuan 14,000/mt last Tuesday, while September aluminum futures stood at Yuan 14,110/mt on the Shanghai Futures Exchange compared with Yuan 13,995/mt the previous day and Yuan 14,130/mt last week.
    
In Japan, the ADC12 spot import trade remained stalled due to the US dollar approaching Yen 103, from 102-102.50 a week ago, Japanese market sources said.
    
Platts kept its ADC12 export price assessment at $2,180-2,190/mt FOB China Tuesday, unchanged from last week as bids and offers were within the range.
    
Offers were at $2,210-2,250/mt CFR Japan, late November shipments. A Japanese consumer said his buy idea was around $2,210/mt CFR Japan. No deals were done, however, as buyers were waiting for the US dollar to fall back to Yen 102.
    
The demand outlook was positive, as Japanese automakers were expected to keep the current output level for the remainder of the year, said Japanese diecaster sources.
    
"The July-December vehicle output outlook of our customer is a 10-20% rise from April-June, but forecast start out bullish and is revised down gradually to compromise with the reality," said one Japanese diecaster source.
    
Chinese sellers were indicating export offers at similar level.
    
"The export trade to Japan is not very active due to the summer holidays among Japanese auto and diecasting plants," said a southwest China-based producer.
    
An east China-based producer said: "We have lowered our export offers to $2,215/mt CIF China, down $5/mt from last week as Japanese buying interest has been very thin due to the summer vacation and a weaker yen."
    
Meanwhile, despite rangebound primary aluminum ingot prices, Chinese sources said the supply of Zorba-grade aluminum scrap had remained tight, thereby keeping import offers above $1,800/mt CIF China. Chinese producers use import-grade aluminum scrap for exports.
    
On Monday, the LME official cash price for aluminum was $1,994-1,995/mt, compared with $1,979-1,980/mt last Friday and $2,030-2,032/mt last Monday.

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.

Warburg, Baosteel agree deal

Source: www.chinamining.org  Citation: Reuters  Date: August 20, 2014

Global private equity firm Warburg Pincus and China`s Shanghai Baosteel Gases Ltd have agreed a deal to buy the industrial gas assets of Henan Jinkai Chemical Investment Holding Group for 3 billion yuan ($489 million), the two partners said on Tuesday.
    
The deal is part of a strategic partnership between Warburg and Baosteel to explore projects in industrial gases, as the Chinese company looks to increase its competitiveness at home and internationally.
    
"Our partnership with Baosteel Gases is of particular significance to both parties, demonstrating the latest progress in our efforts to participate in the ongoing Chinese State-owned enterprise reforms," said David Li, managing director of Warburg.

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 Molybdenum looks for more overseas mining acquisitions

Source: www.chinamining.org  Citation: Bloomberg  Date: August 20, 2014

Li Chaochun, chairman of China Molybdenum.

China Molybdenum, the mainland`s biggest producer of the metal, is seeking more acquisitions after the success of its US$820 million purchase of a Rio Tinto Group copper mine in Australia.
    
"We`ll prefer mining assets in developed countries or regions with stable political conditions," said Li Chaochun, the chairman of the company, which is based in Luoyang, Henan province. "We are bullish on copper over the long run. It is one of our investment priorities. We`re also studying other metals."
    
Buying the Northparkes mine, its first overseas copper acquisition, helped the mainland producer diversify into precious and base metals, as it seeks to become a global mining company.
    
China Molybdenum, which started a team looking for overseas assets in 2008, last week reported a 66 per cent jump in first- half profit as Northparkes added to production.
    
"Diversification will help the company achieve stable growth by avoiding price risks on a single metal," said Wang Min, a rare-metal analyst with Beijing Antaike Information Development.
    
Shares in China Molybdenum have climbed 59 per cent this year, outstripping the 7.1 per cent increase in the benchmark Hang Seng Index. The stock closed 0.72 per cent lower at HK$5.48 yesterday.
    
Molybdenum is mainly used to make speciality steel tougher and resistant to rust. Demand for that application might continue to expand at the 10 per cent growth rate of the first half as the mainland sought to shift its production mix to more valuable steel grades, Li said.
    
"Higher speciality steel grades require more molybdenum," he said. "China`s increasing demand for high-strength alloys, used from offshore drilling platforms to oil pipelines, and molybdenum chemicals used in refining catalysts, will push up the metal consumption over the long run."
    
While molybdenum mines were opening up, smaller and inefficient mines were set to be closed, restraining the supply increase together with government measures to raise environmental standards against processors, Li said.
    
China might gradually remove its export quotas on tungsten and molybdenum by the middle of next year, Li said, after a World Trade Organisation panel determined in March that the country did not adequately justify its restrictions.

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.

Mining giant announces demerger

Source: www.chinamining.org  Citation: Xinhua  Date: August 18, 2014

BHP Billiton, world largest mining company, said on Friday that it was pushing ahead with a demerger of its non-core assets to create a new 14 billion Australian dollar ($13 billion) resources giant.
    
BHP Billiton said in a statement that it was pursuing options " to make the company simpler and more productive".
    
"We believe that a portfolio focused on our major iron ore, copper, coal and petroleum assets would retain the benefits of diversification, generate stronger growth in cash flow and a superior return on investment," the statement read.
    
"By increasing our focus on these four pillars, with potash as a potential fifth, we will be able to more quickly improve the productivity and performance of our largest businesses."
    
"A demerger of a selection of assets is our preferred option."
    
The board is expected to release more information about the demerger when it reconvenes next week.

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 July refined copper output jumps 19% on year to 634,000 mt

Source: www.chinamining.org  Citation: Platts  Date: August 19, 2014

China`s refined copper output was 634,000 mt in July, up 18.9% from around 533,000 mt recorded in July 2013, an official from state-owned nonferrous metals information division Beijing Antaike said Monday, citing data from the National Bureau of Statistics.
    
The July output was up 1.7% from June`s production of 623,428 mt. The Antaike official said that the higher output was in line with an increase in capacity this year.
    
China`s copper capacity is expected to rise to around 10 million mt in 2014, up about 11.1% from 2013.
    
Meanwhile, based on Antaike`s earlier statement, Platts calculated that the production totaled 4.11 million mt for January-July, up 8.4% 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 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.