Shang Fushan's R&D of China Nonferrous Metal Industry

SHANGHAI, Aug. 2 (SMM) -- Rumors circulated in markets on July 23rd that Shang Fushan, Vice Chairman of China Nonferrous Metals Industry Association (CNIA), approved the nonferrous metal draft plan for the 12th Five-Year Plan for the period 2011 to 2015. However, SMM contacted him and he stated he has not yet announced the industry draft plan and the rumors are incorrect.  

CNIA official predicts China's apparent consumption of four base metals will reach 43.8 million mt/yr by 2015, including 5 million mt of lead and 6.5 million mt of zinc. China's nonferrous metal industry will mainly focus on meeting domestic demand, use domestic and overseas energy sources, and make full use of mineral resources in China and foreign countries. The industry must also control expansion of smelting capacity and phase out inefficient capacity over the next five years. China's Central Government plans to limit zinc smelting capacity to 6.7 million mt by 2015. From a resource self-sufficiency standpoint, the government will set 2015 raw material self-sufficiency goals for copper, aluminum, and zinc of 40%, 80%, and 50%, respectively.    

According to China's National Bureau of Statistics, for the period January to June 2010, China's zinc output reached 2.477 million mt, up 30.4% YoY. China's output of zinc concentrate reached 1.795 million mt, up 40.8% YoY. Based on these results, China's 2010 output of zinc and zinc concentrate is on track to reach 9.196 million mt and 9.654 million mt by 2015.

China's nonferrous metals output has maintained high growth rates over the past several years, and now according to statistics from CNIA, output of several nonferrous metals in China ranks first in the world. In this context, China's resources, energy supplies, and environment all face growing pressure. If China continues to import large amounts of ores, Chinese smelters will continue to be subject to pressure from overseas ore suppliers, similar to the current iron ore situation. SMM believes the most important issue facing China's metal smelters is the development of internal ore supply and to improve the quality of products to raise competitiveness.

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