SHANGHAI, Dec. 1 (CBI China) -- Due to "Pilot scheme for non-ferrous metal reserves" in Yunnan Province, domestic metal futures especially zinc rose sharply by nearly 2%. "Scheme" plans to use funds raised by provincial fiscal in various ways to collect and store 1 million tons of non-ferrous metal mineral raw materials, including 150,000 tons of copper, 300,000 tons of aluminum, 150,000 tons of lead, 300,000 tons of zinc, 100,000 tons of tin, with reserves period of 1 year. It aims at encouraging enterprises to use low-cost to seize a number of non-ferrous metal mineral resources at home and abroad in the way of acquisition, mergers, cooperation and joint ventures, etc.
CBI was informed that Yunnan local lead producers have not yet been informed clearly by the Government, but they welcome this kind of policy. First of all, "Scheme" support lead industry in the way of collection and storage which will no doubt alleviate the current excess supply of lead and zinc and help production enterprises more directly, however, it is not clear that "Scheme" will collect ore or metal, if the reserve period is one year, it is uncertain directed collection or support in other way; and it is also to seen whether Yunnan Province trial scheme is the first national reserve forces or not.
In short, CBI believes that the domestic price of lead plummeted for nearly two months, and has established the track at the top of 8300 /mt, in this context, the policy from time to time will be icing on the cake.
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