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Non-ferrous Metals: Promoting the Further Perfection of Chin

Summary of the report:

Nonferrous metal prices continued to rise this week, driven by optimism about economic growth among investors. Among them, tin, zinc and nickel prices rose by 6.2%, 5.1% and 4.5% respectively, leading the increase. Gold prices also rebounded 2.1% to $1,205 an ounce due to rising inflation pressures and the introduction of a new deal in the Chinese gold market.

This week, most small metals prices rose again, with tantalum rising by 5.5% to $68 a pound; molybdenum concentrate prices continued to rise by 2.5% to $2,040 a tonne; and rare earth prices remained unchanged and remained at year-high levels.

With metal prices rising, the North American Basic Metal Mining Stock Index and the Gold Mining Stock Index rose 3.8% and 3.2% respectively this week. A-share non-ferrous metal sector also continued to rebound, rising 1.9% in the week, and greater than the same period Shanghai and Shenzhen 300 (2850.211, 17.57, 0.62%) index of 1.0%.

Prices of major non-ferrous metals have risen considerably in recent years, and they are obviously out of the cost range. Considering that the uncertainty of global economic recovery is still large, prices are facing certain downward adjustment risks. In addition, A shares of non-ferrous metal plate recent rise is also larger, do not recommend catch-up.

On August 3, the People's Bank of China and other six departments jointly issued "Several Opinions on Promoting the Development of the Gold Market", which detailed a series of plans for the development of the domestic gold market. It is pointed out that a well-functioned gold market should be able to meet the financing needs and risk aversion needs of the industry, reduce the production costs of enterprises, provide market information to enterprises, help enterprises formulate reasonable production and operation plans, promote industrial restructuring and upgrading, and enhance industrial competitiveness.

At present, China's gold market is still in the initial stage of development, and the development of all aspects is still immature. The publication of Opinions will further improve China's gold market system, promote the optimization and upgrading of gold industrial structure, accelerate industrial development, and broaden investment channels to better meet the investment needs of residents.

On August 6, the China Nonferrous Metals Industry Association established the "strategic emerging industry development planning project for nonferrous industry" which mainly covers the fields and conditions for the development of the project. The 17 development areas of high performance copper, aluminium, magnesium, titanium, zirconium alloys and processing materials are identified as strategic emerging industry planning projects. The establishment of this development plan will better guide and promote the development and competition of downstream deep processing industry.

On the basis of increasing the implementation of the differential tariff policy, Hainan Province imposes punitive tariffs on enterprises with excessive energy consumption.

Among them, cement and other industries that have more than doubled the quota standard will increase the price by 0.80 yuan per kilowatt hour, steel industry by 0.50 yuan per kilowatt hour, cement and other industries by 0.50 yuan per kilowatt hour and steel industry by 0.20 yuan per kilowatt hour if they have doubled the quota standard. The 11th Five-Year Plan of Hainan has made slow progress in energy saving and emission reduction. Therefore, the management of high energy consumption industries is also very strict.

Chile's Collahuasi copper miners are likely to Reject Early wage negotiations, raising labour tensions at one of the world's largest reserves of resources. Workers have high expectations for wage increases and welfare improvements, with half of the union members voting to reject the proposal and the other half voting later. Collahuasi Copper Mine produced 535,000 tons of copper in 2009, accounting for 3.3% of the world's mineral copper.