News

China plans Shanghai crude oil futures launch in H2 2017 – sources

Source: www.chinamining.org     Citation: Reuters       Date: April 19, 2017

China is looking at launching its crude oil futures in Shanghai in the second half of this year, two sources familiar with the matter said, breathing new life into a derivative that was considered shelved only months ago. 

The contract is aimed at giving China, world`s second-largest oil consumer after the United States, clout in pricing crude in Asia, and a share of the trillions of dollars in oil futures trade that flow through global benchmarks Brent and West Texas Intermediate .

Shanghai`s International Energy Exchange (INE) last year was close to launching the futures contract, which was approved in 2014 after years of planning, but its plans were shelved after volatility in domestic stock and commodities markets spooked regulators.

The sources were unclear when the contract would actually start to trade.

"In the second half of this year, maybe in September or October," one of the sources said, adding it could take place before the 19th National Congress of the Communist Party of China, where a change of guard under President Xi Jinping will take place.

The second source said the launch could happen earlier, possibly in July or August.

It was not immediately clear what factors prompted the project`s revival.

An INE spokeswoman did not give a definitive start date, saying, "We are actively preparing and are striving to launch the product as soon as possible."

Crude oil sold in Asia is mainly priced against the Dubai, Oman and dated Brent benchmarks assessed by S&P Global Platts or the Oman crude futures on Dubai Mercantile Exchange.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

UAE aluminium giant gears up to tap Chinese market

Source: www.chinamining.org     Citation: Xinhua      Date: April 18, 2017

DUBAI - Emirates Global Aluminium (EGA) said here Monday in an e-mailed statement that it has opened its first office in Shanghai.

The office in Shanghai of EGA`s wholly-owned Chinese subsidiary will source raw materials and other supplies in China.

EGA has procured over $500 million of supplies from the world`s second economy over the past two years, it said. "Shanghai is an important economic centre in China," EGA`s CEO Abdulla Kalban told Xinhua by e-Mail.

Kalban said "China is already a substantial source of raw materials and supplies for EGA, and we expect the importance of China for our business to grow in the coming years."

The scale in future of EGA`s sourcing from China and sales into China will depend on the success of commercial discussions, he explained.

Kalban said the UAE is strategically situated in West Asia, an area of focus for China under its Belt and Road Initiative, which aims to revive ancient Silk Road trading links.

In 2014, China replaced India as Dubai`s biggest trade partner and has retained this position since then, 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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China has suspended coal imports from DPRK: Customs

Source: www.chinamining.org     Citation: Xinhua          Date: April 14, 2017

In line with a UN resolution, China suspended all coal imports from the Democratic People`s Republic of Korea (DPRK) on Feb 19, the General Administration of Customs (GAC) said on Thursday. 

The action was in accord with the UN Security Council Resolution 2321,which took effect on that date, GAC spokesperson Huang Songping told a press conference.

The UN Security Council adopted the resolution on Nov 30, in response to the fifth DPRK nuclear test on Sept 9 last year.

A total of 2.7 million metric tons of coal was imported from DPRK in the first quarter of 2017, down 51.6 percent year-on-year, all before the resolution came into effect, said Huang.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

More sectors to open up for private investment

Source: www.chinamining.org     Citation: Xinhua          Date: April 11, 2017

China will open up more industries, including oil drilling and defense technology, to private investors to cope with slowing private investment growth, Xinhua-run Economic Information Daily reported Monday. 

The government will also lure private investment into strategic emerging industries by setting up industrial investment funds, according to the report. 

Nur Bekri, head of the National Energy Administration, told the newspaper that the reform plan of the oil and gas industry had gained government approval and would soon be released. The sector will open its competitive operations to private investment as per this year`s government work report. 

"Access restriction is one of the major factors that constrain China`s private investment, especially in the energy and military industries," said Li Wei, head of the Development Research Center of the State Council. 

Private investment is even encouraged in the defense science and technology industries, including China`s Chang`e-4 lunar probe mission, which aims to be mankind`s first soft landing on the far side of the moon in around 2018. 

"Widening access for private capital to enter these industries, together with improved regulation, will both boost development efficiency and stimulate private investment growth," Li said. 

Growth in private investment slowed to 3.2 percent year on year in 2016, 6.9 percentage points lower than in 2015, due to poor performance in manufacturing, service and mining sectors, as well as continued price decline of investment in fixed assets. 

But the downward trend was reversed after the government moved to spur growth, with private investment recording growth of 6.7 percent in the first two months of the year. 

China`s local governments are also working to attract private capital into cash-strapped strategic emerging industries, which have found it difficult to get bank loans as many start-ups are yet to turn patents and intellectual property into profits. 

As these industries have now become major growth engines in many regions, local governments are considering ways of luring private investment such as public-private partnerships and industrial investment funds, according to the report. 

Government-led industrial investment funds are expected to play a guiding role in leading private capitals into the strategic emerging industries, it said. 

China aims to increase output of strategic emerging industries to account for 15 percent of GDP by 2020.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Myanmar oil pipeline deal reached in Beijing

Source: www.chinamining.org     Citation: China Daily      Date: April 11, 2017

President Xi Jinping and Myanmar President U Htin Kyaw attend a welcoming ceremony outside the Great Hall of the People in Beijing on Monday. [Photo by Feng Yongbin/China Daily]

China and Myanmar on Monday signed an agreement on a crude oil pipeline to send oil from Myanmar`s Kyaukpyu Port to Yunnan.

The agreement and eight other cooperation documents were signed after talks between President Xi Jinping and Myanmar President U Htin Kyaw, who is on a state visit to China from Thursday to Tuesday. Details of the agreements were not released.

In the talks, Xi said China is willing to "push forward China-Myanmar cooperation to focus more on Myanmar`s livelihood, such as education and rural area development", according to a news release issued by the Foreign Ministry.

Xi said China expects to work with Myanmar to firmly adhere to the right direction of bilateral ties and support each other on key issues related to core interests.

China appreciates Myanmar`s active involvement in the Belt and Road Initiative, Xi said, adding that Beijing will comprehensively consider development strategies of the two nations to promote cooperation in fields like trade and investment, infrastructure, energy, hydropower and border economic cooperation zones.

China will also push forward key cooperation projects such as the Kyaukpyu special economic zone and connectivity projects, Xi said.

He said China respects Myanmar following a development path in accord with its own national status.

China will continue playing a constructive role in Myanmar`s domestic peace process and work with Myanmar to jointly maintain security and stability in the border area, Xi said.

U Htin Kyaw said his country will never forget China`s help in its development and support in the international arena.

This is his first visit to China after taking office in March 2016. He visited Chengdu, Xi`an, Shanghai and Hangzhou before arriving in Beijing.

Vice-Foreign Minister Liu Zhenmin told reporters after the meeting that one section of the China-Myanmar crude oil pipeline has been finished, while China has built a refinery near Kunming, provincial capital of Yunnan.

"Recently, the two sides have been discussing operation of the pipeline. After the signing of the agreement, I believe the pipeline will be put into operation soon," Liu said.

He said the project will not only transport oil that China imports from Myanmar, but will also benefit regions along the pipeline.

The two sides also reached "important consensus" in areas such as energy, interconnectivity and infrastructure cooperation, Liu revealed.

China and Myanmar have "basically reached consensus" on the Myitsone Dam project, which was delayed by the former Myanmar government, Liu said.

"Both sides expressed positive expectations," he said, adding the two sides will continue the discussion to reach a proper win-win settlement. "It is predictable that there will be a result acceptable to both sides in the coming future."

Liu said a gap in the nation`s common efforts that existed in the past will be filled by the decision to focus combined efforts more on the livelihoods of Myanmar`s people.

U Htin Kyaw also met Premier Li Keqiang on Monday. Li stressed that stability in northern Myanmar has a direct effect on security of Southwest China.

China does not want to see the border area disturbed and will support Myanmar`s efforts to realize domestic peace and reconciliation, Li 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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China will remain world’s biggest steel producer for the next 100 years

Source: www.chinamining.org     Citation: People`s Daily Online      Date: April 11, 2017

China will be the world`s biggest steel and iron manufacturer for the next 100 years, predicted Li Xinchuang, vice chairman of the China Iron & Steel Association and president of the Metallurgical Industry Planning and Research Institute.

China currently has the capability to produce over 800 million tons of crude steel per year. In 2016, the country`s total crude steel output accounted for 50.3 percent of the world`s 1.6-billion-ton output, according to statistics. 

The country`s actual consumption of steel and iron peaked in 2014 at 702 million tons, but then decreased to 664 million tons in 2015. However, last year, the figure witnessed a slight rise to 673 million tons, up 1.3 percent year on year. Experts explained that the turnover was spurred by the development of infrastructure and the automobile and real estate industries. 

Li said the global steel and iron market has been transferred to China -- a change that he believes was driven by economic development and technological progress. He also noted that it was catalyzed by advantages related to labor, land and capital. 

Li added that China`s steel and iron industry is among the most competitive sectors of domestic manufacturing. The sector has reached a good standard in terms of quality, price, scale, service and brand. Additionally, China boasts the world`s largest-scale and most dynamic demand, a sound industrial system and rich manpower, Li pointed out. 

China has also made an unprecedented effort to cut overcapacity. Last year, the country announced plans to cut 100 to 150 million tons of overcapacity in the next five years.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

EU imposes anti-dumping duties on Chinese steel products

Source: www.chinamining.org     Citation: Xinhua          Date: April 10, 2017

The European Commission decided on Thursday to impose anti-dumping duties on hot-rolled flat steel products from China. 

The European Commission, or the European Union (EU)`s executive arm, said these products had been sold in Europe at heavily dumped prices. The new anti-dumping duties range between 18.1 percent and 35.9 percent and will be in place for an initial five years. 

A Chinese Ministry of Commerce statement on Thursday quoted Wang Hejun, head of the ministry`s trade remedy and investigation bureau, as saying that the EU continued the use of the unfair and unreasonable "surrogate country approach" in the investigation, which resulted in artificially-determined high anti-dumping duties for Chinese products and thus seriously undermined Chinese enterprises` interests. 

Wang said the EU`s conclusion lacks factual grounds, urging the EU to correct wrongdoings. He said China will take necessary measures to protect the interests of Chinese enterprises. 

Hot-rolled flat steel is commonly used in construction, gas containers, cars, pressure vessels and energy pipelines.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China steel demand to fall in 2017, pressuring iron ore prices - institute

Source: www.chinamining.org     Citation: Reuters         Date: April 01, 2017

China`s steel demand is expected to fall 1.9 percent this year, pressuring iron ore prices as production of the key steel-making ingredient increases, the head of a Chinese think tank said on Thursday. 

Steel demand in China, the world`s largest consumer and producer, is seen easing to 660 million tonnes, said Li Xinchuang, president of the China Metallurgical Industry Planning and Research Institute. 

The drop comes as Beijing applies tough reforms to cut surplus production capacity. 

"We think China`s steel consumption will decrease step by step by step -- maybe increase some years, like last year. That`s our situation," Li, who is also vice chairman of the China Iron and Steel Association, told an industry conference in Perth. 

He said iron ore import demand in China had inched up 0.7 percent to 1.1 billion tonnes in 2016, with the country`s dependence on imports at 87 percent of total demand. 

The institute sees seaborne iron ore supply increasing by about 50 million tonnes this year, which is about 10 million tonnes more than forecast by world No. 2 iron ore miner Rio Tinto (RIO.AX)(RIO.L). 

As a result, the institute predicts iron ore prices will range between $55 and $90 a tonne in 2017, averaging around $65. 

"Unfortunately, with the fast increase of iron ore prices, China iron ore production increased 15 percent in the first two months," Li said. 

Iron ore is currently trading around $77.60, up nearly 40 percent from a year ago. 

"What`s the future? We think the oversupply of global iron ore is very serious for the long term," he said, but he added that China would still be heavily dependent on iron ore imports in the 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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.