Nonferrous Metal Mining and Dressing Industry Fixed-Asset Investment Falls Sharply in Jan.-Feb. 2017, SMM Reports  

Published: Mar 16, 2017 11:19
Fixed-asset investment of nonferrous metal mining and dressing industry was 5.5 billion yuan in Jan.-Feb. 2017, down 15.4% YoY, and the decline widened 5.4 percentage points from 2016’s level.

SHANGHAI, Mar. 16 (SMM) – According to China Customs, fixed-asset investment of nonferrous metal mining and dressing industry was 5.5 billion yuan in Jan.-Feb. 2017, down 15.4% YoY, and the decline widened 5.4 percentage points from whole year’s level in 2016. Nonferrous metal mining and dressing industry private fixed-asset investment was 3.5 billion yuan, down 12% YoY, and with decline widening 5.8 percentage points from whole year’s level in 2016. Nonferrous metals output was 8.92 million tonnes in the first two months of 2017, up 11.7% YoY.

Mining and dressing investment includes underground and ground excavation, mine’s operation, ancillary works, such as crushing and grinding, dressing and disposing and selling preparation. The investment excludes water harvesting, purification and distribution, geological exploration and construction.  

SMM survey finds that nonferrous metal mines, satisfying with current ore prices, have high operating enthusiasm. So, nonferrous metals output increased significantly in Jan.-Feb. 2017. Large and qualified mines still have room to expand output despite of capacity reduction policy and environmental protection inspections. However, falling investment indicates that mines doubt if nonferrous metal prices will stay high in the future. Besides, there is a high risk for mines to increase investment with financial strain and stricter environmental protection inspections.

In other news, in the first two months of 2017, China’s fixed-asset investment was 4.14 trillion yuan, up 8.9% YoY, with growth up 0.8 percentage point from whole year’s level in 2016. Manufacturing investment expanded 4.3% YoY to 1.22 trillion yuan and the growth rose 0.1 percentage point. Infrastructure construction investment rose 27.3% YoY to 831.5 billion yuan with growth up 9.9 percentage points from whole year level in 2016 and 12.3 percentage points from the same period in 2016. Real estate investment grew 8.9% YoY to 985.4 billion yuan and the growth rose 2 percentage points from whole year level in 2016 and 5.9 percentage points from the same period in 2016.

SMM expects mines to increase investment in the future with rising nonferrous metal demand at those industries.

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