China News Summary
China to build up commodity reserves
China announced it is building up strategic reserves of copper, chromium, manganese, tungsten, rare earth metals, as well as oil and certain types of coal. The announcement came as oil prices slipped further down.
Inner Mongolia Baotou Steel Rare Earths (600111, SH), China's largest rare earths processor, dropped 0.96 percent to RMB 8.22.
Xiamen Tungsten Co. (600549, SH), world's largest tungsten refiner, dropped 2.64 percent to RMB 8.12.
Yunnan Tin Co. (000960, SZ), world's largest tin producer, declined 4.02 percent to 10.74.
Pingdingshan Tianan Coal Mining Co. (601666 SH), the listed unit of China's fifth-largest producer of the coal, added 0.26 yuan, or 1.8 percent, to 15.11.
Hebei Jinniu Energy Resources Co. (000937,SZ), a Chinese coal producer, rose 0.56 yuan, or 3.3 percent, to 17.56.
According to the Ministry of Land and Resources, China will by 2020 consume 3.5 billion tons of coal, 500 million tons of crude oil and 1.3 billion tons of iron ore. And it's reliance on import of crude oil, iron ore and copper will be 60 percent, 40 percent and 70 percent respectively if preventive measures are not taken.
Rare earths getting rarer
By 2015, the country will keep its annual output of the rare earths below 140 thousand tons, with the annual output of tungsten, tin, antimony below 78 thousand tons 150 thousand tons and 140 thousand tons respectively. The country will also strengthen protection on indium, germanium, zirconium and vanadium.
China has the world's largest deposits of rare earths (as well as tungsten, indium and germanium) and produces over 90 percent of the world's strategic metals. Activists will be pleased production and prices have gone down as the relatively high price of high earths had previously wreaked havoc on many rural Chinese villages by spewing toxic waste into the general water supply. ,
China reduced its export subsidy on some rare earths in 2005 after the country extracted 76 percent of its measured rare earths deposits and squeezed the export price 36 percent lower than that of 1990.
Register here to be notified of future China News Summary articles.
Other China News Summary articles
-
28/06/09 The Chinese iron-ore deposit that grows with every headline
-
13/04/09 China markets at eight month high on talk of more stimulus measures
-
05/03/09 Chinese markets mixed as stimulus fails to materialise, state banks make sharp gains
-
09/02/09 China steel prices at nine-week high, iron-ore demand congests ports
-
06/02/09 China overtakes US as world's largest car market
-
24/01/09 Chinese power companies turn to global market as domestic coal producers refuse price cut
-
12/01/09 Premier Wen's confidence not shared by Chinese markets
-
13/12/08 Chinese Iron Ore and Steel Producers end week on low note
Other China News Summary news
-
02/07/09 Flu vaccine shares surge after seven students at Beijing’s Nanhu Zhongyuan Primary School are confirmed as infected
-
30/06/09 China Mainland markets fall, led by auto and steel shares
-
29/06/09 Commodities drag Hong Kong lower, but mainland indices rise on property price inflation in Beijing
-
26/06/09 China's benchmark indices advance, lead by property companies
-
25/06/09 China's Liaoning Province finds 3 billion tonne iron ore deposit
-
25/06/09 China's leaders meet to discuss future of national timber industry
-
24/06/09 China markets rally, lead by coal and industrial metal shares
-
18/06/09 Financial shares surge in Shanghai, but fall in Hong Kong
-
15/06/09 Hong Kongs drops while Shanghai rises on Ping An deal
-
15/06/09 Beijing starts stockpiling pork to support prices
