Short news metals
February 7, 2013 Category Automotive Metals & Minerals, Short news metals
- Benxi Steel Group Corp’s sales revenue exceeded CNY100 billion in 2012, up 10% year-on-year. In 2012, its exports contract volume reached 4 million metric tons, up 48% year-on-year, which contributed USD2.3 billion. The company, based in Benxi, Liaoning province, is one of the main iron and steel producers in China with an annual output of 20 million tons of high-quality steel products.
- China’s nickel pig iron output in 2013 may rise 25% more than previously forecast as costs decline, curbing nickel imports, Japan’s top producer of the metal said. China’s output of nickel pig iron, a substitute for low-grade ore from Indonesia and the Philippines, will reach 300,000 metric tons in 2013, said Toru Higo, General Manager of nickel sales and raw materials at Sumitomo Metal Mining Co.
- Chinalco Mining Corp International, a unit of China’s biggest aluminum producer, plans to raise as much as USD435 million in an initial public offering (IPO) in Hong Kong to fund its copper project in Peru. Chinalco Mining, owned by Beijing-based Aluminum Corp of China, plans to use about 30% of the proceeds to develop the USD2.2 billion Toromocho project. Copper consumption in China, the biggest buyer, will expand 4.9% this year, following a 4% gain in 2012.
- China Minmetals Corp has recorded a 37% drop in annual profits to CNY8 billion, which it blamed on falling global commodity prices and a domestic economic slowdown. Revenue last year was CNY325 billion, said President Zhou Zhongshu. He predicted that the era of soaring demand for metals in China had gone, and that companies in the industry will continue to face difficulties in making profits. “The capital-driven growth of the metals industry cannot be sustained in the future,” he added. Zhou said the company’s 2013 target is to keep profits stable at CNY8 billion, with total revenue of CNY320 billion.
- Anshan Iron and Steel Group Corp (Ansteel) turned its losses into profits in December. Chairman Zhang Guangning said the group will make every effort to increase efficiency in 2013. In the first quarter of 2012, the company posted a loss of CNY1.89 billion. In 2011, its losses reached CNY2.446 billion.
- The Aluminum Corp of China (Chalco) warned it would seek legal redress if Mongolia breaks what it says is a loss-making coal supply deal. Mongolia’s state-owned Erdenes-Tavan Tolgoi (E-TT), which runs the 7.5 billion ton Tavan Tolgoi project, wants to renegotiate a deal with Chalco to supply USD250 million of coal. E-TT delayed an IPO of up to USD3 billion, citing problems including the deal with Chalco.
- Wuhan Iron and Steel (Group) Corp, China’s fourth-largest steelmaker by output, is to boost investment in overseas iron ore mines and plans to achieve 100% iron ore self-sufficiency in three to five years. It also wants to abandon its heavy reliance on imported iron ore, which is sold at high prices by the top three iron ore producers. Wisco said in a statement it will “secure part of iron ore resources in Canada and Brazil to achieve self-sufficiency”.
- Baoshan Iron and Steel Co raised prices for main products for the second time in a month in January. The booking prices for March delivery will rise CNY200 a ton for most hot-rolled and cold-rolled products. The Shanghai-based mill raised February prices by CNY160 a ton on January 7. The firm is bullish over demand for March and April, the traditional peak season.
- Aluminum Corp of China (Chalco) said it swung to a full-year loss on falling prices and higher costs for alumina. The company has sought to diversify into coal and iron ore mining to cut its dependence on aluminum smelting.
- China has tightened regulations on gold trading conducted by banks in a move to enhance supervision. The Shanghai headquarters of the People’s Bank of China (PBOC) requires all domestic and foreign banks to report their existing gold trading activities. The new interbank system provides real-time trading data to the regulator.
- Hong Kong’s net gold flow to mainland China jumped 47% last year to a record high of 557.478 tons, indicating robust demand in China, which vies with India to be the world’s top gold consumer. Hong Kong shipped 114.372 tons of gold to China in December, also a record high for monthly exports. The city received 19.644 tons of gold from the mainland in that month. Its total gold shipments to China last year jumped 94% from the 2011 total to over 832 tons, but imports also were six times higher at 274.684 tons, data from the Hong Kong Census and Statistics Department showed.
- Inner Mongolia produced 20,095 kg of gold last year, 20% more than in 2011. Chifeng topped all the cities in Inner Mongolia, with an output of 7,638 kg of gold, up 10% year-on-year. Hohhot had the highest rate of growth, up 73% to 440 kg.
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