SHANGHAI, Mar. 5 (SMM) – The Jingzhe festival is one the 24 solar terms in China and means that temperature will rise faster.
China's capital market was consistent with the characteristic of this festival on Tuesday as the Shanghai and Shenzhen Composite Index surged 2.33% and 2.21%, respectively, with turnover reported at RMB 116.7 billion and RMB 106.5 billion, respectively. The most active SHFE 1306 copper contract gained 0.9% to reach the 5-day moving average, while the most active SHFE 1306 zinc contract increased 0.36%.
SMM holds the view that market rebound was due largely to Premier Wen Jiabao's Report on the Work of the Government, showing that China plans to increase fiscal deficit by RMB 400 billion YoY to RMB 1.2 trillion in 2013. The Chinese government's move of expanding spending boosted market confidence over China's investments in major basic construction projects. But the sustained impact of the report on markets remains to be seen.
Concerning copper industry, the latest SMM survey revealed that more than 80% of electric wire and cable producers are upbeat about March orders. They said that as copper consumption picks up gradually, electric wire and cable orders will increase. Some enameled wire producers told SMM that enameled wire consumption has entered the seasonally peak demand period, which should be made more pronounced during March.
In other news, Yunnan Chihong Zinc & Germanium is likely to win the right to develop the Selwyn zinc and lead project, one of the five untapped zinc-lead deposits in the world.