By Anil Mathews (ScrapMonster Author)
November 30, 2015 02:10:34 AM
BEIJING (Scrap Monster): The Chinese aluminum and nickel producers have urged the state planner, the National Development and Reform Commission (NDRC), to buy surplus supply of the metals. The proposal was made by the China Non-ferrous Metals Industry Association (CNIA), in the wake of plunging price situation.
The request by the Association is depictive of the extremely worse situation the metal producers in the country are currently passing through. Apart from aluminum and nickel, the proposal also calls for similar action on minor metals including cobalt and indium. It is unclear as to whether the Chinese authorities will agree to the proposal. Both NDRC and CNIA declined to comment on the matter.
According to some sources, CNIA has proposed buy up of 900,000 tonnes of aluminum, 30,000 tonnes of refined nickel, 40 tonnes of indium, and 400,000 tonnes of zinc. On the other hand, some sources confirmed that buy up of zinc is not included in the proposal. A positive action on the proposal is likely to revive the prices of the metals. It must be noted that the buy up of more than 700,000 tonnes of copper by the State Reserve Bureau (SRB) in 2009 had arrested the price fall.
Meantime, nine large Chinese copper producers, who account for nearly 60% of the country’s refined copper output, have decided to cut output of the refined metal by 200,000 tonnes in 2016. Also, eight nickel producers have agreed to cut output by 15,000 tonnes in December this year and by another 20% in 2016. Zinc companies have also agreed to slash almost one-fifth of their production by next year.