SHANGHAI, Mar. 9 (SMM) – China’s stock markets reversed losses on Tuesday. The Shanghai Composite Index advanced 2.33%, with trading volumes at 116.7 billion, while the Shenzhen Component Index gained 2.21%, with trading volumes at 106.5 billion. SHFE 1306 copper contract prices rose 0.9% to the 5-day moving average, and SHFE 1306 zinc contract prices went up 0.36%.
SMM attributes the rebound in capital markets to Premier Wen’s government work report. According to the report, the Chinese government’s fiscal deficit for 2013 increased RMB 400 billion compared with last year. Expanding government spending has kept markets optimistic over government investment in infrastructure construction. However, it remains to be seen how long this positive impact will last.
SMM’s survey found that over 8% of copper wire and cable producers are optimistic over orders for March. These surveyed producers believe orders will increase in March as consumption gradually recovers. Some enamel wire producers said enamel wire consumption has entered seasonally high-demand period and expects even higher demand in March.
It is likely that Yunnan Chihong Zinc & Germanium will be able to buy stakes from its partner to absolutely control its subsidiary SelwynChihongMining. Selwyn lead & zinc mine is one of the world’s five largest unexplored lead & zinc mines.