What you need to know post-CNY

SHANGHAI, Feb 22 (SMM) – This is a roundup of major news in the world of metals in China over the past week.

- The People’s Bank of China issued 350 billion yuan of reverse repo on the first working day after Chinese New Year in a bid to maintain the stability of liquidity in the banking system. The injection was made through a seven-day, 160-billion-yuan reverse repo, a 28-day, 130-billion-yuan reverse repo and a 63-day, 60-billion-yuan reverse repo, according to a statement.

- China’s monetary policy in 2018 is set to maintain a tight balance with a focus on deleveraging and risk aversion, according to a report released by the central bank just before Chinese New Year.

- China issued more than 20,000 sewage discharge permits for 15 industries including steel and cement by the end of 2017, according to the Ministry of Environmental Protection. More efforts are expected this year to enforce and improve the regulations.

- China’s social inventory of refined aluminium including SHFE warrants amounted to 1.96 million mt as of Thursday February 22, according to SMM data. This is up from 1.82 million mt recorded just before the Chinese New Year holiday.

- China Baowu Steel Group reported a sales revenue of 110 billion yuan and operating profits of over 7 billion yuan in 2017. Merged from Baosteel and Wuhan Iron and Steel Corp, the steelmaker is set to continue the strategy of decreasing output but increasing efficiency in 2018, according to its deputy general manager Guo Bin. As the production is estimated to be cut by 4 million mt to 14 million mt this year, the company would close down two blast furnaces and one coke oven.

- China exported 2.2 million mt of steel scrap last year, compared with some 1,000 mt in 2016, according China Iron and Steel Association (CISA).

- Social inventory of zinc in Shanghai, Guangdong and Tianjin added over 45,000 mt during the Chinese New Year holiday, according to SMM data.

- China will take necessary measures to defend its rights if the US decision on steel and aluminium imports affected the country’s interests, according to the Ministry of Commerce. In a response to the heavy tariffs recommended by the US Commerce Department following the Section 232 investigation, China called the probe “groundless and in contradiction to facts”. 

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