SHANGHAI, Dec. 1 (CBI China) -- Today, Yunnan government has published news about collection of 1 million tons of non-ferrous metal, including 0.3 tons of zinc. CBI contacted every smelters and lead and zinc mining enterprises in Yunnan province as early as possible, the director all said, basically the news always exists, but they have not yet received formal notification or approval on the "big "Initiatives from provincial government, and specific reserves were also unknown, so the market maintained a wait-and-see attitude. However, according to insider’s analysis, the news had the intent to boost the futures and spot prices. According to CBI analysis, the collection and storage plan had limited significance. First, and when government determine to carry out this plan, the source of funding is a problem; Second, no doubt related commodity prices will rise after collection of government. As for zinc, pricing rising can indeed reduce the burden of zinc smelters and lead and zinc mining companies, but domestic zinc smelting capacity was large, and domestic mine production was stopped, and some enterprises may resume production or improve operation rate, whether the downstream consumption can be improved or can be increased operation rate ? If the answer is no, the imbalance between supply and demand in domestic zinc market would be further. Therefore regardless whether it is the best time for collection or not, is collection the best way to improve the current downturn non-ferrous metals market?
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