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[concern] Gansu Province issued an opinion plan: collection and storage of 436000 tons of non-ferrous metals
Apr 27,2020 15:26CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM4, March 27: according to SMM, Gansu Province is working out the "implementation Plan for the Reserve of Nonferrous Metals in Gansu Province," which reserves 436000 tons of non-ferrous metal products, including 80, 000 tons of copper, 300000 tons of aluminum, 40, 000 tons of zinc, 15000 tons of nickel and 1000 tons of cobalt.

The period of reserve of non-ferrous metals is tentatively set at seven months (from 1 May 2020 to 31 December 2020). After the expiration of the reserve period, according to the market situation, determine whether to terminate or extend the reserve period.

The funds required for the reserve of non-ferrous metals shall be solved by the undertaking enterprise with a loan from the bank in the form of product pledge and so on. The interest and warehousing expenses incurred during the collection and storage period shall be subsidized by the funds arranged by the provincial budget.

Safeguards:

1. Strengthen organizational leadership. All member units should earnestly improve their political positions, hold joint meetings on a regular basis, jointly discuss and resolve new situations and problems encountered in the implementation of the non-ferrous metal reserve, and ensure that the reserve work is carried out normally.

2. Strengthen reserve management. The storage enterprise shall set up accounts and account independently and truthfully reflect the financial situation of the funds. The joint meeting and relevant financial institutions will strengthen the follow-up inspection of the collection and storage business of storage enterprises, with emphasis on the management of incoming, in and out of warehouses.

3. Strengthen market monitoring. Pay close attention to market changes, the Provincial Development and Reform Commission, the Provincial Department of Industry and Information Technology, and the State-owned assets Supervision and Administration Commission of the Provincial Government, in accordance with their respective responsibilities, further strengthen the monitoring of the non-ferrous metals market, pay close attention to the production capacity, market price trend, supply and demand situation of enterprises, strengthen market prediction, early warning and situation analysis, and improve the ability of market prediction.

4. Strengthen policy support. Provincial local financial regulatory authorities and the central branch of Lanzhou of the people's Bank of China coordinate banking financial institutions to increase the scale of credit funds for key enterprises. The provincial local financial supervision bureau and the central branch of Lanzhou of the people's Bank of China coordinate banking financial institutions to provide preferential interest rate loans to depository enterprises by means of product pledge. In accordance with the methods of collection and storage, the Provincial Finance Department shall give a certain proportion or amount of paste (pad) interest according to the loan scale of the reserve products.

5. We will establish a mechanism for the rotation of collection and storage. We should adopt the method of combining reserve with turnover to realize the flow of materials, maintain and increase the value of goods and materials, and keep them up to date.

SMM interpretation:

According to SMM research, Gansu local enterprises have received the relevant notice, the rumored reserves are not state reserves, but commercial reserves (the state provides low-interest funds to encourage enterprises to buy on their own, self-financing), and this plan is still in consultation, and the official document has not yet been released.

According to SMM, due to the relatively normal operation of domestic electrolytic nickel enterprises, the intention of looking forward to collection and storage is not strong from the point of view of the enterprise itself.

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