News

China sources 84% of H1 iron ore from Australia, Brazil; share seen rising

Source: www.chinamining.org   Citation: Platts   Date: July 31, 2015

China`s iron ore demand is falling, but its share of imports from mining giants Australia and Brazil is rising, which is squeezing smaller miners and curbing their supply.

China imported 453.1 million mt of iron ore in January-June, with 83% of it coming from Australia and Brazil, up from 74% in H1 2014, according to General Administration of Customs data released last week.

The country`s H1 crude steel output fell 1.3% year on year to 410 million mt, the first decline in nearly 20 years and a sign production may have peaked, the China Iron and Steel Association said.

Australia`s top three miners Rio Tinto, BHP Billiton and Fortescue Metals Group, as well as top global miner Vale, all announced higher output in April-June.

"When ore prices fall below $60/dmt level, it is difficult for domestic miners to survive," a Beijing-based trader said.

"When the price fall below $50/dmt level, it is below the cost curve for many overseas small miners."

The trader said output from smaller miners has fallen sharply this year. The Platts IODEX CFR China price was assessed at $56.75/dmt Wednesday, up from a record low of $44.50/dmt on July 8.

Capesize freight rates from Australia to China have increased 15.9% in the same period to $6.20/wmt Wednesday, from $5.35/wmt on July 8.

Given weak prices and lower China demand, miners large and small are looking for any means to cut costs.

"If the price stays below $45/dmt for three months, some big producers may have financial problem not to mention small ones," an international trader said.

Supply from smaller miners has as a result become less stable, leading some steel mills to prefer buying from the top miners. But others have continued to seek out smaller miners for deals.

"For the same iron content, non-mainstream ores is $3-$5/dmt cheaper than mainstream ores," said a steel mill source that buys regularly from small miners, adding that the discount applies mostly to low iron content fines used for blending.

Another steel mill source said most products are currently difficult to source in the spot market except for Pilbara Blend fines from Rio Tinto, and Newman fines and Yandi fines from BHP Billiton.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Peru looks to expand exports to China

Source: www.chinamining.org   Citation: China Daily Latin America   Date: July 30, 2015

The Consul General of Peru in Guangzhou expects the trade between China and his country to continue its robust momentum and generate 20 percent growth this year, while looking to export more categories of products to China.

Bilateral trade between the two countries stood at $16 billion last year, with products exported to China including minerals, fishmeal and fruits, and those imported from China including machinery, telecommunications equipment and chemicals, said David Gamarra Silva.

Two-way trade has been increasing since the free trade agreement (FTA) between the two economies took effect in 2010, he said.

China is Peru¡¯s largest trading partner and Peru is China¡¯s fifth largest partner in Latin America.

Starting this month (July), avocadoes from Peru will enter the Chinese market to join grapes, mangoes, oranges and lemons.

Gamarra hopes, through the FTA, to expand the trade to more fields and enable more small and medium-sized enterprises to export their products, such as jewelry made of pearls, gold and silver, and wool-made handicrafts, to China.

With a long coastline, his country is also developing the aquatic products industry.

However, many Peruvian businesses have no idea how to export their products to China and Gamarra¡¯s team provided guidance in business promotion to some Peruvian SMEs attending the China Import and Export Fair in Guangzhou in April and May.

Guangdong JMA Aluminum Profile Factory (Group) Co, one of the largest Chinese aluminum profile producers, sees a sizable demand in Peru and is seeking partners in the South American country, said Lin Runqu, manager of the export department.

The company plans to attend an international trade show of building materials in Lima, Peru’s capital, later this year.

Guangdong Homa Appliances Co, one of the largest refrigerator and freezer exporters of China, expected its sale to Peru to skyrocket from 3,000 units last year to 30,000 units this year, said Michael Yao, vice-president for sales and marketing.

He attributed the strong momentum to the relatively low tariff and the rising consumption in the Peruvian economy, adding the historical link with people with Chinese origin helps to advance the cooperation between the two economies.

Homa plans to expand its presence in emerging markets, including Peru, by developing new models and strengthening the cooperation with local distributors, brands and manufacturers, Yao said.

Meanwhile, Gamarra hopes that more Chinese investment could flow into Peru to produce higher value-added products, including in the mining industry and into infrastructure.

By the end of last year, Chinese investment into Peru had amounted to $18 billion, extending to sectors such as mining, forestry, fishery, construction and real estate.

He also sees the potential of bringing Peruvian businesses to the free trade zones in Guangdong, which offers incentives to foreign investors.

Gamarra takes special interest in promoting cultural exchanges between his country and South China, pointing to the fact that 12 percent of the Peruvian population of 30 million has Chinese origin.

Peruvians are familiar with Chinese culture and all provinces have many Chinese restaurants, which are called chifas, with similar pronunciation of Chinese word "have meal," he said.

Nearly 90 percent of Peruvian Chinese can trace their roots to cities like Guangzhou, Zhongshan, Jiangmen and Taishan in Guangdong province.

Gamarra is devoted to disseminating Peruvian culture in Guangdong, with links already forged between a number of universities in Peru and Guangdong, and an exhibition of photos depicting the Chinese migrants on his mind.

With his consulate general in Guangzhou formally launched last month, Gamarra pledged efficient visa service to Chinese travelers, 24 hours upon the collection of necessary documents to qualified applicants.

"Chinese travelers to Peru totaled 16,000 last year. China is a huge country and we want to increase that," Gamarra 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s crude steel output suffers first decline in 20 years

Source: www.chinamining.org   Citation: China Knowledge   Date: July 30, 2015

China`s iron and steel industry experienced continuous recession in spite of the nation`s economy tending to be stabilized under a series of stimulus policies, according to the latest press release held by China Iron and Steel Association (CISA).

CISA said that the output of crude steel dropped 1.3% year on year to 410 million tons in the first half of this year, signaling the first decline in nearly 20 years, and steel overcapacity still remains.

In the first six months of this year, the sales income from China`s large and mid-sized steel companies fell 17.9% to RMB 1.5 billion, and its core business suffered a heavy loss of RMB 21.68 billion in the period.

The sustained sluggish demand and long-time low price for steel drag down innovation and transformation in the sector, a senior official in CISA said. Furthermore, the difficulty and high costs in corporate financing, together with the trade conflict due to surging steel export also put huge pressure.

The overproduction of steel products since 2008 financial crisis and falling prices caused by shrinking domestic demand have been the major headache for China.

China should actively adapt to the changes and transform their business model to foster new profit growth in the future, CISA added.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s June thermal coal imports slow to 4-month low

Source: www.chinamining.org   Citation: Platts  Date: July 23, 2015

China`s June imports of thermal coal slumped to a four-month low of 6.21 million mt, a 43% on-year drop and down 4% on the previous month, according to customs data released Wednesday.

The tally comprises bituminous and sub-bituminous coals but does not include lower calorific value material classified as lignite.

China`s thermal coal imports in the first six months of 2015 were 42.35 million mt, a 44% fall from the year-earlier period.

Trading sources have pointed to a multitude of reasons for China`s current downturn in imports including price cuts from domestic Chinese producers, more stringent regulatory scrutiny by the government, an industrial slowdown reducing power demand and increased competitiveness to coal from the hydropower sector.

China received 3.76 million mt of Australian thermal coal in June, down 28% on the year and 1% lower than May, while imports from Indonesia slumped 52% on-year to 1.76 million mt.

Thermal coal imports from Russia decreased 56% on-year to 661,790 mt, the lowest monthly intake since October 2012.

Meamwhile, China`s intake of lignite in June fell 18% on the year to 2.9 million mt, the lowest since Platts started collating lignite volumes in September 2012.

Lignite imports for the January-June period were 23.75 million mt, down 35% on the corresponding 2014 period.

First half imports from China`s top lignite supplier, Indonesia, stood at 22.15 million mt, down from 33.91 million mt a year earlier.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s top coal miners report declining output

Source: www.chinamining.org   Citation: Xinhua   Date: July 22, 2015

Flagging demand in China has dented output at the country`s top two coal firms, as slower economic growth took a toll on the world`s largest producer and consumer of the mineral.

China Shenhua Energy Co., Ltd., China`s largest coal miner, reported on Tuesday that its coal output declined 10.1 percent year on year to 139 million tonnes in the first half of 2015.

China Coal Energy Co., Ltd, the second-largest coal producer, said on the same day its output slumped 22.1 percent to 46.3 million tonnes in the first six months.

During that period, coal sales by China Shenhua Energy slipped 24.2 percent and those by China Coal Energy fell 12 percent, according to the two companies` statements.

The drop in sales was caused by weaker demand, the impact of government measures to reduce pollution and other reasons, China Shenhua Energy said.

The coal industry will remain anemic in the short term and it will get more difficult for producers to survive, said Wang Xianzheng, head of the China National Coal Association.

Coal accounts for about 66 percent of China`s primary energy consumption, 35 percentage points higher than the world average.

The country`s coal output fell in 2014 for the first time this century as a result of slowing economic growth, government efforts to reduce air pollution and increased investment in renewable energy.

China`s economy expanded 7 percent year on year in the second quarter, unchanged from the first quarter but still much slower than the previous double-digit growth.

Overall coal production in China slipped 6.1 percent in the first four months this year to 1.15 billion tonnes, with the pace of decline accelerating from a 3.5-percent fall registered in the first three months of the year, official data revealed earlier.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Shenyang to build China`s first trading platform for non-ferrous metals

Source: www.chinamining.org   Citation: chinadaily.com.cn   Date: July 16, 2015

On July 6th Shenyang Heping District Government announced China`s first non-ferrous Internet conference, to be held in Heping District, Shenyang city from September 23 to 24.

Meanwhile, China`s first Internet trading platform for non-ferrous metals will be also available within this year.

For now, the "Internet + traditional industries" model is seen as the best way to upgrade traditional industries. The non-ferrous metal industry faces the opportunity to transition, and that`s the context of hosting China`s first non-ferrous Internet conference.

The conference will be co-organized by China Nonferrous Metals Industry Association and Shenyang Heping District Government, and plans to invite more than 300 professionals to discuss the solutions and paths of "Internet + nonferrous marketing" in a bid to promote the transformation and upgrade of the industry.

The head of Shenyang Chengtong Metal Ltd , a leading nonferrous enterprise, said that participating enterprises will include smelting enterprises, traders, logistics companies, banks, and major production enterprises. China`s first non-ferrous metals trading platform will be set up in Shenyang this year, greatly reducing operating costs. As a consequence, Shenyang is expected to become China`s trading center for non-ferrous metals.

Non-ferrous metals have high liquidity, high standardization, high price volatility, high risk, and strong financial features. The advantages of the Internet are openness and transparency, efficiency, big data gathering, and risk prevention. Therefore, Internet + non-ferrous metals industry is the only way out for industry transformation and upgrading. Internet technology will help the industry to improve efficiency, reduce transaction costs, reduce operational risks, and improve the financing environment.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Mining companies facing stiff CSR challenges, says report

Source: www.chinamining.org   Citation: China Daily   Date: July 16, 2015

Mining and extraction companies are accelerating their overseas sales and investment plans, on the back of two key government-led sources of potential funding - the Asian Infrastructure Investment Bank and the Silk Road Fund, according to a new report.

Last year Chinese investors ploughed $116 billion directly into 6,128 overseas companies in 156 countries or regions, according to the study, called Transparency and Risk Management for Chinese Extractive Industry`s Overseas Investment, which is supported by the United Kingdom`s Department for International Development.

Reporting on the findings, the 21st Century Business Herald said Chinese enterprises are facing more intense international competition as they go global, and rising scrutiny of their social responsibility provisions, particularly in the so-called extractive industries, or those which involve the removal of raw materials from the earth to be used by consumers.

The report shows that Chinese foreign investment in the extractive industry was worth $106.1 billion by the end of 2013, accounting for 16 percent of the country`s total overseas investment.

But it also said companies are facing stiffening challenges involving their social responsibilities, including legal requirements, levels of localization, environmental protection, community participation, and that now they need to work harder at their levels of local information transparency and communication with different local parties, to reduce potential risks.

China is currently involved in numerous exploration projects in countries such as Kenya and Tanzania in Africa, which play a key role in growing national revenues and raising standards of living across the continent.

However, Shan Mitra, a senior economist at the UK`s Department for International Development, said the country`s continued involvement in the global extractive industry could present many more risks than in other industries, as practically every stage in the industrial process is being scrutinized more closely than ever before.

A recent industry survey showed that just 28 percent of Chinese mining companies currently met international standards of transparency, even though most said they regarded full information disclosure as an important factor in assessing overseas investment risk.

Nearly 65 percent insisted they put a premium on creating efficient communications mechanism within their overseas operations, but admitted that communication was still often limited to local government departments, suppliers and employees.

Zhang Jianping, director of international economic cooperation at the Institute for International Economic Research, part of the National Development and Reform Commission, said Chinese enterprises must pay more attention to the laws and social customs of any market in which they invest, and underlined the importance of cooperating with local non-governmental organizations and labor unions, as well as national governments.

Some of the country`s largest State-owned enterprises have taken steps to tackle social problems and protect ecological environment overseas, said Zhang, but small and medium-sized enterprises often had inadequate experience and ability to carry out their social responsibilities.

By the start of last month, seven major extractive enterprises - all owned by the Chinese central government - are believed to have released 23 overseas social responsibility reports on activities in 13 countries or regions.

Sinosteel Corp, involved in mining, trading, equipment manufacturing and engineering, published the sector`s first overseas social responsibility report in 2007.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Shanghai-HK gold link launches

Source: www.chinamining.org   Citation: Xinhua   Date: July 13, 2015

The Chinese Gold and Silver Exchange Society of Hong Kong and the Shanghai Gold Exchange announced on Friday the official launch of a link between the bullion markets in the two cities.

The start of the Shanghai-Hong Kong Gold Connect marked the deepening of cross-border market connections from equities to commodities, and the move will further promote their financial integration and development. The link will allow Hong Kong investors to trade on the main and international boards of the Shanghai Gold 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.