SHANGHAI, Feb. 28 (SMM) -- With the NPC & CPPCC sessions approaching, the market has begun to forecast the policy trends during the two sessions. The first reserve requirement ratio cut for banks in 2012 has come into effect last week, and whether or not the easing of monetary policy can be more clarified during the two sessions will be the focus of the market. Investors will pay attentions to hot topics during the two sessions, such as real estate, western development, energy conservation and environmental protection, new energy, new materials and other nonferrous metal-related issues and then seize the investment opportunities.

In terms of real estate, according to the 12th Five-Year Plan, China needs to build a total of 36 million units of affordable housing during the 12th Five-Year Plan period to solve the housing problem of one hundred million people, and should start construction of over 7 million units of affordable housing and generally complete the construction of 5 million units in 2012 based on 10 million units of affordable housing starts in 2011. Although the number of affordable housing starts for 2012 is lower than that for 2011, the number of completed housing is higher than 2011. Therefore, affordable housing will be one of hot topics during the two sessions this year. The construction of affordable housing will definitely drive up the consumption of related raw materials, such as steel, nonferrous metals and other products. Non-ferrous metals and steel prices returned to an upward track recently after months of substantial declines, and if clearer goals are released during the two sessions, the medium-and long-term demand for related products will be boosted.

In terms of new energy and new materials, Chinese demand for new materials and new energy will become stronger along with the transformation of China's manufacturing sector, and the related investment will increase in response, which will be a positive factor for demand for nonferrous metals, and Chinese demand for nonferrous metals will grow steadily during 2012-2017, with the application of copper, rare earth and silver in new energy and new materials sectors most promising. In this context, Chinese demand for nonferrous metals will likely improve further along with the improvement in supply and demand conditions and the increase in industrial concentration in various sub-sectors.