Profit Rises at China Nonferrous Metals Industry in 2016, SMM Reports

SHANGHAI, Feb. 7 (SMM) - The National Bureau of Statistics (NBS) data show profit at domestic large nonferrous metals producers improved in 2016 from 2015, SMM finds.

Profit at mines and processors increased in 2016 due to rising nonferrous metals prices, SMM said. Profit at smelters and rolling processors increased 42.9% year-on-year, while that at mining and dressing industry was only up 9.7% year-on-year.

Higher nonferrous metals prices opened the import window. Smelters and processors imported overseas ores and gained high profit, SMM reckoned. Meanwhile, the number of large nonferrous metals mines has been decreasing over recent years because of the slack mining industry. They were unable to benefit from higher prices in 2016 because it will take a long time for mines to restart or expand output, SMM added.

The number of large mining and dressing plants decrease more rapidly compared to smelters and rolling processors. If prices remain high in 2017, an increasing number of mines will be inspired to restart and increase production, SMM said.

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