Home / Metal News / [Sep 19, 2010]Healthy Chinese Economy Supports Positive Demand for Base Metals - Highlight from China Base Metal Briefing

[Sep 19, 2010]Healthy Chinese Economy Supports Positive Demand for Base Metals - Highlight from China Base Metal Briefing

iconSep 19, 2010 16:50
Source:SMM

According to the NBS, China's added value from industrial enterprises in August was up 13.9% YoY, and up 0.5% MoM.  YTD added value was up 16.6% YoY. Total retail sales of consumer goods gained 18.4% YoY.  All of these results indicate healthy growth in China's economy, with domestic demand for base metals poised for strong growth as well.

Copper:  According to the National Bureau of Statistics, China's refined copper output was 397 kt in August, down 1 kt from July, a loss of 0.3%. SMM believes China's output of refined copper will increase in September. (Page 5)

Aluminum:  SMM sources report local governments are still restricting power supply to some downstream processors in order to achieve energy saving targets, despite that fact that summer weather and high temperature conditions have ended. Operations at many aluminum processors throughout China are negatively affected by power restrictions.   (Page 8)

Zinc:  The Guangxi provincial government implemented power restrictions and ordered production cuts in order to achieve energy efficiency targets. Operations at both Hechi Nanfang Non-ferrous Metal Smelt Company and Liuzhou China Tin Group were negatively affected.  (Page 9)

Lead:  LME lead prices on Monday reached USD 2,255/mt due to positive economic data from China, but prices then fell back due to mixed data from the US. Transactions in domestic lead markets improved earlier in the week, but later turned lackluster from weak LME lead prices.   (Page 12)

Nickel:    Demand for (4-6%) NPI increased due to tight supply of (10-15%) NPI, pushing up (4-6%) NPI prices.   (Page 15)

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