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Nonferrous Metals Industry Suffers Greater Losses in Q3

iconOct 31, 2013 16:01
Source:SMM
The CE Industrial Prosperity Index released by China Economic Net held steady in Q3 and indicated noticeable recovery in industrial economy.

SHANGHAI, Oct. 31 (SMM) – The CE Industrial Prosperity Index released by China Economic Net held steady in Q3 and indicated noticeable recovery in industrial economy, benefitting from China’s policies to maintain stable growth and a turnaround of demand overseas. However, overcapacity remains a prominent issue, leaving slim chance for enterprises to emerge from the tough situation. The Industrial Prosperity Index is expected to edge lower in Q4.

Despite improvement in overall economy, the CE prosperity index for nonferrous metals industry slipped 0.3 on a quarterly basis to 97.3 in Q3, its lowest since 2010. 
 
The severe capacity surplus continued to pressure nonferrous metals prices. Although metals prices bounced back from Q2’s low levels in the third quarter, which was particularly evident in August, profitability across nonferrous metals industry remained low.
 
China’s nonferrous metals industry realized 38.41 billion yuan in total profit during the third quarter, down 10.3% from a year ago, narrowing from the 11.4% in Q2. About 20.7% of nonferrous metals enterprises reported losses in Q3, up 0.4% year-on-year, with their total loss amounting to 10.64 billion yuan, rising 3.9% from a year earlier. 
 
Nonferrous metals industry remained in the process of destocking, and the value of finished product as of the end of Q3 grew by 4.4% from a year ago to 175.04 billion yuan, 3.9% slower than the growth in Q2. Increase in the value of finished goods in nonferrous metals industry has been slowing for seven quarters in a row since Q1 2012, and with the current growth hitting a low last seen in 2010. 
 
China nonferrous metals industry
profit of nonferrous metals industry

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