Non-ferrous metal output in China, the world's top metal
producer since 2002, grew by almost one-fourth in the first half of
this year as a result of strong demand and prices.
January to June combined production of 10 main metals, such as
aluminum, copper, lead and zinc, hit 10.97 million tons, up 24.1
percent from a year ago, according to data from the National
Development and Reform Commission (NDRC), China's top economic
planner.
Meanwhile, 5.65 million tons of aluminum were produced, an
increase of 34.9 percent. Copper production climbed by 12.9 percent
to 1.56 million tons.
China Non-ferrous Metal Association, an industry body, predicted
in March that the country's 2007 metal production would rise by 15
percent to 22 million tons, including 11 million tons of aluminum
and 3.45 million tons of copper.
The NDRC said the rise in production and high metal prices
boosted the sector's profits sharply.
In the first five months of this year, the sector reported a
51.5 billion yuan in profits, surging 41.3 percent
year-on-year.
Prices of many metals remain on the bullish side in China
because of strong demand. For example, spot lead prices stood at
17,998 yuan per ton on average last month, rocketing 67.9 percent
from a year earlier.
From January to June, the sector's fixed-assets investment grew
by 43.1 percent to 66.9 billion yuan. The rate was down from 57
percent in the first quarter.
But the NDRC believes the investment growth remains too fast. It
said it will take measures pertaining to environment, land and
finance with departments concerned in the second half to prevent
"blind investment and low-level expansion" in copper, aluminum,
lead and zinc smelting segments.
China's first-half metal exports rose by 30.8 percent to $13.66
billion, according to data from the metal association. Overall
imports of metals and raw materials jumped by 67.6 percent to
$29.33 billion.
However, imports of alumina, the raw material used to make
aluminum, plunged by 20.2 percent to 2.66 million tons because of
fast-expanding domestic production.
Alumina production in China reached 9.45 million tons in the
first six months, surging 58.1 percent.
(China Daily August 2, 2007)
