Metals Purchase and Reserve Slightly Eased Gloom in Metals Market-Shanghai Metals Market

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Metals Purchase and Reserve Slightly Eased Gloom in Metals Market

SMM Insight 08:23:10PM Jan 11, 2013 Source:SMM

SHANGHAI, Jan. 11 (SMM) – Moves by the State Reserve Bureau (SRB) to purchase and reserve base metals in 2012 become a headline in China’s nonferrous metal industry against the waning demand for metals and severe overcapacity in the industry caused by global economic downturn, slightly easing the gloom in domestic metals market. However, given China’s economic slowdown and unimproved domestic demand, the weakness in market fundamentals is far from being turned around by the stockpiling policy, as any uptick in the whole industry should be spurred by demand.

Major Actions Concerning Metals Reserves 2012

September
Yunnan province purchased 200,000 mt of aluminum, 20,000 mt of copper, 50,000 mt in zinc, and 10,000 of tin for reserve.

November 13
Baotou I/S stockpiled rare earth.

November 15
The SRB purchased aluminum and zinc, 100,000 mt each, for state reserve.
The SRB bought 20,000 mt of zinc from Zhuzhou Smelter, 25,000 mt from Baiyin Nonferrous Metals, 15,000 mt from Yuguang Gold & Lead, 20,000 mt from Chifeng Kumba Hongye Zinc, 20,000 mt from Zijin Mining, at an average price of RMB 16,000/mt.
The SRB purchased 40,000 mt of aluminum from Chalco, 30,000 mt from China Power Investment, 15,000 mt from Yunnan Aluminum, 10,000 mt from Henan Wanji Aluminum, and 5,000 mt from Qinghai Qiaotou Aluminum, at prices between RMB 15,737-15,757/mt.
 
November 21
Baotou I/S stockpiled rare earth.

November 26
Baotou I/S stockpiled rare earth.

December
The SRB purchased rare earth for state reserve

Rare earth stockpiling by Baotou Steel 2012:

              
                Product

Purchasing Prices (RMB/mt)

Nov. 13

Nov. 21

Nov. 26

Lanthanum oxide 

63,000

70,000

75,000

Cerium dioxide

63,000

70,000

75,000

Didymium oxide

400,000

450,000

50,000

Dysprosium oxide

3,500,000

3,850,000

4,500,000

Terbium oxide

5,500,000

5,900,000

6,200,000

Europium oxide

7,500,000

8,500,000

9,000,000

Yttrium oxide

150,000

170,000

170,000

Praseodymium oxide

 

530,000

580,000

Neodymium oxide

 

550,000

600,000


 

Price

more
Aluminum Ingot
Oct.16
13880.0
110.0
(0.80%)
Aluminum Ingot - Fo Shan
Oct.16
13840.0
60.0
(0.44%)
Aluminum Ingot - Wu Xi
Oct.16
13890.0
100.0
(0.73%)
Aluminum Ingot - Hang Zhou
Oct.16
13905.0
95.0
(0.69%)
Aluminum Ingot - Chong Qing
Oct.16
13840.0
85.0
(0.62%)

Metals Purchase and Reserve Slightly Eased Gloom in Metals Market

SMM Insight 08:23:10PM Jan 11, 2013 Source:SMM

SHANGHAI, Jan. 11 (SMM) – Moves by the State Reserve Bureau (SRB) to purchase and reserve base metals in 2012 become a headline in China’s nonferrous metal industry against the waning demand for metals and severe overcapacity in the industry caused by global economic downturn, slightly easing the gloom in domestic metals market. However, given China’s economic slowdown and unimproved domestic demand, the weakness in market fundamentals is far from being turned around by the stockpiling policy, as any uptick in the whole industry should be spurred by demand.

Major Actions Concerning Metals Reserves 2012

September
Yunnan province purchased 200,000 mt of aluminum, 20,000 mt of copper, 50,000 mt in zinc, and 10,000 of tin for reserve.

November 13
Baotou I/S stockpiled rare earth.

November 15
The SRB purchased aluminum and zinc, 100,000 mt each, for state reserve.
The SRB bought 20,000 mt of zinc from Zhuzhou Smelter, 25,000 mt from Baiyin Nonferrous Metals, 15,000 mt from Yuguang Gold & Lead, 20,000 mt from Chifeng Kumba Hongye Zinc, 20,000 mt from Zijin Mining, at an average price of RMB 16,000/mt.
The SRB purchased 40,000 mt of aluminum from Chalco, 30,000 mt from China Power Investment, 15,000 mt from Yunnan Aluminum, 10,000 mt from Henan Wanji Aluminum, and 5,000 mt from Qinghai Qiaotou Aluminum, at prices between RMB 15,737-15,757/mt.
 
November 21
Baotou I/S stockpiled rare earth.

November 26
Baotou I/S stockpiled rare earth.

December
The SRB purchased rare earth for state reserve

Rare earth stockpiling by Baotou Steel 2012:

              
                Product

Purchasing Prices (RMB/mt)

Nov. 13

Nov. 21

Nov. 26

Lanthanum oxide 

63,000

70,000

75,000

Cerium dioxide

63,000

70,000

75,000

Didymium oxide

400,000

450,000

50,000

Dysprosium oxide

3,500,000

3,850,000

4,500,000

Terbium oxide

5,500,000

5,900,000

6,200,000

Europium oxide

7,500,000

8,500,000

9,000,000

Yttrium oxide

150,000

170,000

170,000

Praseodymium oxide

 

530,000

580,000

Neodymium oxide

 

550,000

600,000