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Natural gas prices go up

Source: www.chinamining.org  Citation: Global Times  Date: August 13, 2014

Two workers check Sinopec`s natural gas facility in Puyang, Central China`s Henan Province. Photo: CFP

China announced Tuesday a 20.5 percent rise in natural gas price for non-residential use, marking another step in a reform to make the gas prices more market-driven.
    
The price hike is expected to boost imports and output of the cleaner fuel in one of the world`s largest energy consumers, analysts said.
    
Effective from September 1, the gas price for industrial and commercial users will increase by 0.4 yuan ($0.06) per cubic meter, the National Deve-lopment and Reform Commission (NDRC), China`s top economic planner, said in a statement on Tuesday.
    
The price adjustment is based on the amount of gas consumed in 2012, while the price for newly added gas consumption will remain unchanged.
    
After the adjustment, the price of non-residential natural gas will rise to 2.35 yuan per cubic meter at gas stations, according to the Xinhua News Agency`s calculation.
    
The price hike also exempted more sensitive consumers such as households and fertilizer producers.
    
This is the second important step to make the gas price fully market-driven by 2015, the NDRC said.
    
The latest hike came after a similar 15.4 percent increase for non--residential gas consumers in July 2013 when the NDRC launched a new pricing mechanism.
    
"The price hike will benefit gas producers including PetroChina and Sinopec as it will reduce losses of their import business," Wang Xiaokun, a natural gas analyst with consulting firm Sublime China Information, told the Global Times on Tuesday.
    
Under the current pricing system, the gas price is artificially kept lower than the cost of imports as the government fears that higher energy prices will lead to inflation that could jeopardize the economy.
    
However, the government-controlled gas prices discourage importers and producers to increase imports and output to meet the country`s growing demand for cleaner fuel.
    
Market-based gas prices will spur gas imports to meet the growing domestic demand for the cleaner fuel, Wang said.
    
China imported 53 billion cubic meters gas in 2013, accounting for about 30 percent of its total gas consumption, and the demand will further grow given the need to fight against air pollution, the NDRC wrote in the statement.
    
Average gas consumption is growing 15 percent annually in China, and the domestic gas output can no longer meet the demand, according to the NDRC.
    
The price hike is expected to add 44.8 billion yuan in revenues for gas importers and producers, yet it will add pressure on the downstream industrial users, Sun Yang, an analyst at chem365.cn, an energy market intelligence service provider, told the Global Times on Tuesday.
    
"This price adjustment will have no impact on consumers as the price for residential users remains unchanged," the NDRC wrote, noting the rise in costs for industrial users will spur industrial restructuring and eliminate redundant energy-consuming capacity.
    
China`s energy consumption per unit of GDP declined 4.2 percent year-on-year in the first half of this year, the largest fall since 2009, official data showed on Tuesday, marking a significant progress in energy saving and pollution control.
    
Even after the price uptick, the natural gas is still competitively priced compared with its substitutes including fuel and liquefied petroleum gas, and therefore the impact on the industrial sector is limited, the NDRC 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.

China says July steel output drops 1.4 pct on month

Source: www.chinamining.org  Citation: Reuters  Date: August 13, 2014

China produced 68.32 million tonnes of crude steel in July, down 1.4 percent from the month before as mills began cutting output during the off-season.
    
The daily production rate amounted to 2.20 million tonnes, down 4.6 percent from a record daily rate of 2.31 million tonnes in June, data from China`s National Bureau of Statistics showed on Wednesday.
    
Large-scale mills slashed average daily production by 2.8 percent to 1.757 million tonnes in the last 11 days of July, its lowest rate since mid April, data from the China Iron and Steel Association (CISA) showed last week.
    
The monthly production figure remains 1.5 percent higher than the same period last year, even though numbers provided by CISA have shown only a negligible increase in apparent domestic steel consumption during the first-half of the year.
    
Much of China`s additional steel output has been sold overseas, with steel product exports in July rising 14 percent on the month to 8.06 million tonnes.
    
Total imports over the first seven months of the year have surged 37 percent to 49.07 million tonnes. Over the same period, China produced 480.76 million tonnes of crude steel, up 2.7 percent on the year.
    
China produced 94.76 million tonnes of steel products in July, up 3.7 percent compared to the same period in 2013, but down 3.4 percent on the month. Production from January to July reached 647.23 million tonnes, up 5.8 percent compared to the same time 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 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 crude oil imports up 7.2% in Jan-Jul to US$ 137.5 bln

Source: www.chinamining.org  Citation: China Knowledge   Date: August 12, 2014

China, the world`s second largest oil consumer after the U.S., imported 175.73 million tons of crude oil in the first seven months of 2014, 7.2% more than in the same period of last year, according to figures from China`s General Administration of Customs.
    
The import value of crude oil for the seven-month period rose 8.1% from a year earlier to US$ 137.5 billion.
    
From Jan to Jul, the country saw its imports of refined oil reach 17.13 million tons, reflecting a decrease of 31.1% year on year. The import value of refined oil went down 29.3% from a year earlier to US$ 13.83 billion in the period.
    
In the month of Jul 2014, the country imported 23.76 million tons of crude oil, while the import value for the month hit US$ 18.69 billion.
    
China imported 1.86 million tons of refined oil in Jul with import value of US$ 1.58 billion.

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 coal imports down 2.2% in Jan-Jul to US$ 14.4 bln

Source: www.chinamining.org  Citation: China Knowledge   Date: August 12, 2014

China saw its coal imports went down 2.2% year on year to 182.89 million tons in the first seven months of this year, according to statistics released by the General Administration of Customs.
    
According to the statistics, the import value of coal decreased 15.1% year on year to US$ 14.43 billion in the seven-month period.
    
Meanwhile, China saw its coal exports amount to 4.43 million tons in the first seven months, 116.8% more than in the same period of 2013. The export value of coal totaled US$ 965.06 million, up 88.3% year on year.
    
Last month, China`s coal imports reached 23.03 million tons with import value of US$ 1.72 billion, while its coal exports hit 0.5 million tons with export value of US$ 97.69 million.

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.

Coal output to be cut

Source: www.chinamining.org  Citation: Global Times  Date: August 11, 2014

Chinese authorities and coal industry association have persuaded domestic coal suppliers to reduce production in a bid to stabilize coal prices, the China Times newspaper reported Sunday, citing an anonymous source with the China National Coal Association (CNCA).
    
The CNCA and coal authorities held several meetings with major coal firms, including China Shenhua Energy Co and China Coal Energy Co, the report said.
    
As a result, Shenhua announced on August 1 that it planned to cut this year`s annual production by 50 million tons, and raised its August coal prices by 4 yuan ($0.65) per ton after nearly two months of cuts.

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 iron ore imports jump

--- Buyers stock up due to lower costs

Source: www.chinamining.org  Citation: Reuters   Date: August 11, 2014

China`s iron ore imports jumped nearly 11 percent in July from the previous month, customs data showed, as buyers took advantage of lower prices for the steel-making raw material and stocked up, despite weak domestic steel demand.
    
Demand from China has remained resilient, helping to justify surging production from major suppliers such as Rio Tinto and BHP Billiton, which has driven iron ore prices down by around one-third this year.
    
July`s total shipments of 82.52 million tons represented the third highest on record, with steel mills in China continuing to produce at high rates. Margins for steel mills have also improved as a result of lower iron ore and other input prices.
    
"The import numbers are generally pretty volatile and you get up months and down months - the June number looked a little low so July represents a higher number, but if you look at the averages over the quarter, it is pretty much in line," said Graeme Train, analyst with Macquarie in Shanghai.
    
Iron ore prices over July were relatively steady, remaining within a range of $93.60-$98.00 per ton and ending the month at $95.60, up 1.9 percent from the end of June, with spot market activity relatively weak, according to data from The Steel Index.
    
In a report published on Thursday, the China Iron and Steel Association (CISA) said that iron ore oversupply widened in July, adding that it expected prices to continue to edge downward in coming months.
    
The weak prices have helped weed out some high-cost production from the market and benefited Australian producers, who have steadily increased their share of China`s total imports.
    
Anglo-Australian Rio Tinto, the world`s No.2 miner which gets the lion`s share of earnings from iron ore, took advantage of that trend and posted a forecast-beating 21 percent rise in first half profit on Thursday.
    
Australia`s share of Chinese iron ore imports was 61 percent of the total in June and 56 percent in the first half of the year, against about 50.8 percent for the whole of 2013.
    
Shipments to China from Port Hedland, Australia`s main iron ore port, rose 4.8 percent on the month to a record high 30.57 million tons in July, suggesting that Australia`s share of China`s total imports increased further.
    
"The strength in shipments from Australia is knocking out just as many tons from high-cost producers in the global market as it is from high-cost domestic producers," said Macquarie`s Train.
    
According to preliminary estimates by industry consultancy Custeel, average daily steel output in China fell 2.2 percent over the July 21-31 period, suggesting that producers were finally responding to weakness in demand.
    
With steel output starting to decline slightly and iron ore imports still at a relatively high level, a supply glut of the steel-making ingredient could worsen, with imported ore stockpiles at major ports set to rise further in coming months.
    
While port inventories fell for two consecutive weeks to reach 111.95 million tons by August 1, they remain 46 percent higher than at the same time last year, according to data from SteelHome.
    
Chinese steel product exports were strong in July, rising 14 percent to 8.06 million tons, the customs data showed.
    
With actual domestic consumption remaining stagnant this year, producers diverted 97.2 percent of their additional output to overseas markets in the first five months of the year, according to CISA data.
    
British consultancy MEPS said this week that it expected China to export 73 percent of its increased steel output over the whole of 2014.

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 electrolytic manganese metal prices rise on tightening supplies: sources

Source: www.chinamining.org  Citation: Platts  Date: August 08, 2014

Chinese electrolytic manganese metal prices rose this week on tightening supplies in the market, sources said Thursday. Major electrolytic manganese metal producers in China have kept their run rates lower due to continued maintenance checks and poor demand in the market.   

Platts assessed 99.7% manganese at $2,050-2,080/mt FOB China Thursday, an increase of 1% or $20/mt from the previous week.   

Industrial sources peg domestic demand ex-works prices at Yuan 12,700/mt ($2,059/mt), up Yuan 200/mt or 1.6% on week.   

A Shenzhen-based producer said that they are still maintaining their run rates at 70%.   

"We are still undergoing maintenance checks at our plants and would likely resume 100% run rates in October," said the producer source. He said that they had delayed their original plan to restart operations at one of their production lines in September.   

Despite the delay, the producer source said that they managed to sell about 120 mt of electrolytic manganese metal to Japanese buyers at $2,100/mt FOB China.   

The producer source also added that several domestic manganese ore mines were undergoing safety checks, hence, supply of manganese ore to several electrolytic manganese metal producers were affected.   

However, a Shaanxi-based trader said that prices of domestic manganese ore were still unchanged and the recent disruption from the manganese ore mines "would not drastically affect the output of manganese metal producers", instead, he reasoned that reduced run rates due to maintenance checks by producers was the main reason for the price increase.   

Industry sources peg domestic 15%-Mn Ore at Yuan 650-660/mt delivered to manganese metal production plants, unchanged on week. About 8-10 mt of 15%-Mn ore is required for every mt of manganese metal produced.   

A Beijing-based Japanese trader said that he had received offers from Chinese sellers at around $2,060/mt FOB China. However, he said that prices were still too high and he had no intention to purchase material. He also added that the Japanese market would be quiet next week due to upcoming festivities. Hence, he said that prices would likely stay stable next week.

Electrolytic manganese is commonly used as an alloy agent for steel production. China is the largest manganese electrolytic metal producer in the world with about 90% of global production.

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.

Chalco gets rare-earth plan OK

Source: www.chinamining.org  Citation: Global Times  Date: August 07, 2014

An excavator digs up earth at a rare-earth mining field in Shanghai on July 24. Photo: CFP

Aluminum Corp of China Ltd (Chalco), China`s leading aluminum producer, said Wednesday the central government had approved its plan to set up a rare-earth enterprise, the latest move by the country to consolidate the rare-earth industry that has been grappling with problems such as overcapacity and illegal exploration.
   
The Ministry of Industry and Information Technology (MIIT) gave permission for a wholly owned subsidiary of Chalco, China Rare Rare-earth Corp, to integrate rare-earth companies in several provinces including Guangxi, Jiangsu, Shandong and Sichuan, Chalco said in a statement posted on its website.
   
Chalco shares climbed by the daily limit of 10 percent to 4.07 yuan ($0.66), a nine-month high, on Wednesday, reaching its highest level since November 5, 2013. The company is also dual-listed in Hong Kong, where its shares climbed by 9.4 percent to HK$3.74 ($0.48).
   
The MIIT`s approval gives a policy boost to the company to consolidate business within a sphere of business operations, mostly by geography, analysts said.
   
On Tuesday, Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co and Xiamen Tungsten Co announced that they had also been granted approval by the MIIT to undertake mergers and acquisitions to consolidate the industry.
   
China`s central government has been making efforts since 2013 to facilitate the establishment of six major industrial groups to engage in the mining, processing and utilization of rare-earth minerals.
   
Three other proposed rare-earth groups, which have not received official approval yet, would be set up by China Minmetals Corp, a major mining company, Ganzhou Rare Earth Group Co, a local nonferrous miner in East China`s Jiangxi Province and Guangdong Provincial Rare Earth Group in South China.
   
The highly valued rare minerals are used in defense system components and high-tech products such as smartphones.
   
"The founding of large rare-earth metal groups is intended to help improve the  regulation and efficiency of the industry," Xu Haibin, a metal analyst with Ji`nan-based commodity consultancy Sublime China Information, told the Global Times Wednesday.
   
Sarah Wang, an analyst with Masterlink Securities Corp, was cited in a Bloomberg report on Wednesday as saying that "investors have more confidence about the company`s performance with the future injection of rare-earth assets."
   
Although China supplies 90 percent of rare-earth elements on the international market, analysts said, its rare-earth industry is challenged by overcapacity.
   
Xiamen Tungsten said in a statement on Tuesday that it will phase out obsolete capacity, enhance measures to protect the environment and crack down on illegal mining, processing and circulation of rare earths.
   
Rampant illegal mining and smuggling is also a problem, analysts said. China launched a campaign in 2012 to crack down on the illegal mining of rare-earth minerals, but Reuters cited Su Bo, a vice minister of the MIIT, as saying in January that the situation is still rife.
   
The consolidation should play a part in ensuring companies not buy or process rare-earth metals dug out by illegal miners, Wu Chenhui, a nonferrous metal analyst with chinaiol.com, told the Global Times Wednesday.
   
China`s rare-earth industry also faced pressure from abroad.
   
On March 26, the World Trade Organization (WTO) ruled that China`s control on export duties and quotas on rare-earth elements, tungsten and molybdenum had broken global trade rules.
   
But on April 17, the Ministry of Commerce spokesman Shen Danyang told reporters that "China will undertake the utmost effort" to appeal against the WTO ruling.
   
China later raised the cap on rare-earth output on July 24, allowing 10 percent more rare-earth metals to be mined in 2014 from the previous year.
   
According to Xu, consolidated companies, which are more efficient and powerful, could be in a better position to compete after the WTO ruling takes effect.
   
Wu at chinaiol.com said that a smaller number of larger rare-earth companies  will also lead to more negotiating power with overseas clients.

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.