Monthly Archives: December 2017

The development of opportunities of Automotive modified plastics is coming

At present, the role and status of modified plastics in the automobile industry is more and more obvious. Everbright Securities believes that the car lightweight plastic car with the demand for modified car usher in the development of modified plastics usher in opportunities for development.

Modified plastics and composites have lower density and higher specific strength than metallic materials. Modified plastics are mainly applied to the interior and exterior decoration of automobiles in the early stage. With the application of fiber-reinforced plastics, they have been applied to automobile structural parts nowadays. In particular, the development of carbon fiber composite materials technology has led to the development of light-weight and light- Quantifying the total solution becomes possible.

In 2016, the demand for modified home appliances in China was 4.4 million tons and the demand for automobile modified plastics was 2.8 million tons. However, the growth rate in home appliance industry has dropped below 5%. As the automobile industry has become a leader in light industry, The fastest growing areas of demand for sexual plastics, it is predicted that the next few years the domestic demand for automotive modified plastics average annual growth rate will be above 15%.

Currently the highest use of modified plastic is the German Department of Bicycle, the use of modified plastics reached 22% of 300-360 kg, the average European and American countries also reached 16% of 210-260 kg, China’s passenger Only 8% of the modified plastic for bicycles is 100-130 kg.

In 2016, the global market for automotive modified plastics will be 221.9 billion yuan. By 2018, it is conservatively estimated that the global market in this area may exceed 300 billion yuan.


Peru’s mineral exports increased by 11.8% in October

According to the Bnamericas website, the central bank’s statistics show that in October, although exports of copper, iron ore and tin declined, most of the exports of metals increased the country’s mineral exports year-on-year.


October, Peru’s exports amounted to 3.84 billion U.S. dollars, an increase of 8.2%, of which, the export of mining products for 2.344 billion U.S. dollars, the year-on-year growth of 11.8%. With imports rising 9.6% to 3.5 billion, Peru’s trade surplus fell to $346 million from $363 million a year earlier.


October, Peru’s largest exports of copper exports of 1.2 billion U.S. dollars, an increase of 6%. Although exports fell 204900 tonnes to 27.6%, copper prices rose from 1.81 dollars/pound to 2.65 dollars/pound, or 46.6%.


Gold exports rose 9.5% to $660 million. Exports grew 7.6% to 515,500 ounces; export prices rose from 1257 US dollars/ounces to 1280 dollars/ounces, or 1.8%.


Zinc ore export volume of 110,200 tons, an increase of 15.8% per cent, exports to 233 million U.S. dollars, growth of 69%. Lead ore export volume of 77,300 tons, an increase of 16.5% per cent, exports to 163 million U.S. dollars, an increase of 34.8%. Lead and zinc prices have all risen.
Sodium Molybdate
Molybdenum exports to 2500 tons, an increase of 2.8% year-on-year, export prices rose 29.5%, export growth of 33%, to 39 million U.S. dollars.


Silver exports to 700,000 ounces, an increase of 39%, exports to 12 million U.S. dollars, growth of 29.2%.


Affected by the 20-day iron mine strike, Peru’s iron ore exports fell by 87% in October, only 100,000 tonnes, and exports fell 81% to $5 million.


The volume of tin exports was 1600 tonnes, down 19% per cent, and exports to 33 million U.S. dollars, down 15%.


Other minerals, phosphate ore exports of 30 million U.S. dollars, an increase of 12% per cent, steel and smelting metal exports of 113 million U.S. dollars, an increase of 28%.

Bacillus thuringiensis

Global mining opens a new era

In the 2017, the world economy recovered more than expected and mining was taking advantage.


The International Monetary Fund (IMF), in its latest World Economic outlook report, has raised global growth forecasts for the next two years by 0.1%, a growth rate of 3.6% in 2017 and 3.7% in 2018, and a rise in growth forecasts for major economies, including China. The IMF estimates that 3/4 of the world’s economies will grow faster this year, the biggest increase in the global economy in nearly 10 years.


Data show that over the past year, prices of major metal ore products have fluctuated frequently, and shortages of major metals and minerals have continued to intensify. In the first half of 2017, the world’s top ten mining companies operating performance growth, some companies share prices than the early 2016 rose 4 times times. Important Mineral Resources countries, in addition to Peru’s GDP growth continues to decline, Canada, South Africa, Chile, Australia’s GDP growth rate between the 1%~3%, Brazil is gradually out of recession, Russia rebounded quarterly, the Chinese economy is gradually stabilising. There are signs that the global mining bottoming is starting to emerge.


In the recent China Mining industry chain Conference, a number of experts and scholars in the mining field said that after four years of sinking in 2012, the global mining industry in the new round of economic recovery or will usher in another active period. Combined with new opportunities in the “All along” mining cooperation, the global mining industry is opening a new era.



Important mineral exploration and development investment rebound


After 4 years of continuous decline, the global mineral exploration and development investment showed signs of recovery.


The International Monetary Fund (IMF) report predicts that emerging and developing economies grew by 4.6% in 2017 and 4.8% in 2018. Among them, China grew 6.7% and 6.4% respectively, Russia grew 1.4% and 1% respectively, Brazil grew 0.3%, 1.3% respectively, India grew 7.2%, 7.7%, and South Africa grew 1% and 1.2% respectively.


Jingweidong, Director of Department of Land and Resources Information Center, said that China’s economic growth is stable, India may become the world’s sixth largest economy. The rebound in iron ore prices has led to a gradual downturn in the economies of mineral exporters such as Brazil, but the slump in oil prices has made the economies of Russia, Venezuela and other countries still more difficult. With the development of mining projects and the construction of infrastructure, some African countries will show rapid growth.


According to the SNL Metals and mining Group survey, the global non-ferrous metal exploration investment in 2016 was 6.89 billion U.S. dollars, down 22% from the previous year, the company is expected to stabilize the recovery in 2017.


The country’s mineral exploration investment was $783 million trillion in the first half of 2017, up 21% from $644 million a year earlier, according to the Australian Bureau of Statistics. Gold and base metals picked up a larger percentage of ore, while iron ore and other minerals grew less.


The World Class copper mine project, such as Democratic RCD-Kakula, continues to make important progress. May, Kakula announced the new resource volume: Copper Metal presumed resources volume 11.3 million tons, copper grade 3.23%, speculate resource volume 1.36 million tons, copper grade 2.26%. At present, the whole of the Kakula-copper mine project along the length of more than 10-kilometer, ore resources of 1 billion tons, will be among the world’s top three copper ore ranks.


Ecuador’s Cascaville copper-gold mine has continuously made new exploration results, repeatedly announced that drilling found thick near-kilometer mineralization, individual drilling more than 1200 meters, the project is expected to be the first announcement of resource volume at the end of the year.


Mongohamagote copper and gold exploration continues to achieve new results. Among them, the Aletantal-covered deposit is 646 meters, copper grade 0.51%, gold 0.87 grams/ton, net Mountain deposit 264 meters, copper grade 0.56%, gold grade 1.46 grams/ton.


At the same time, the exploration of lithium ore and metallogenic theory have made important progress. Democratic Congo’s Mannono (Manono) Lithium mine is considered to be the world’s largest hard rock type lithium mine, is the “Escondida Dida” in the lithium mine, the prospective ore resources amount 1 billion ~12 billion tons, lithium oxide grade 1.25%~1.5%. US scientists have discovered that the lava from the super volcanic eruption cooled and formed rocks, releasing lithium in weathering and erosion and accumulating lithium-clay deposits. The discovery also helps explain the genesis of lithium deposits in South America’s “lithium triangle”. The volcano is dense and the lithium from the volcano is eroded and weathered and enriched in the Alpine Salt Lake.


Jingweidong said the global survey budget data released by the S & P has entered the rising channel. The 2017 nonferrous metal exploration budget was 7.95 billion U.S. dollars, the first rebound since 2012. Copper, cobalt, lithium, graphite, gold, zinc and other minerals have become the main target of exploration, and have made some important discoveries, will become a new trend of mineral exploration.


Jingweidong said that after several years of difficult operations, mining companies to improve profitability, profit growth, market capitalisation increased, financing is no longer so difficult. According to the world’s top ten mining companies statistics, the first half of the total net profit of 16.5 billion U.S. dollars, is twice times the same period last year, close to the year 60%. Profits of the big three iron miners rose more than 60% year-on-year.


Mining industry’s position in economic development is rising


The research report of the Mineral Resources Situation Analysis Group of China National Institute of Land and Resources Economics said that overall, both developed and developing economies have taken mining as the main driving force for economic development, a phenomenon that has been rare in recent years.


Zhang Hongtao, the former chief engineer of the State Council, said that with the recovery of the world’s emerging economies, a pick-up in manufacturing and trade, stronger market confidence and stable commodity prices, exports of commodity emerging markets resumed growth.


“In the next 20 years, the global economic development will not change the demand for resources, the resource shortage fundamentals will not change, the global development trend will not end.” Moreover, China’s new drive for economic development has not been fully released. In the future, global energy demand will remain strong, with more than half of China’s energy needs. “Zhang Hongtao said. However, in a single energy consumption, oil remained the dominant fuel, accounting for 1/3 of the total, and in 2016, after a 15-year (1999 ~2014) decline, the oil market share increased for the second consecutive year and the coal share fell to 28.1%.

Stannous Sulphate


“Despite China’s superior mineral resources, rare earths, tungsten, tin, molybdenum, antimony, vanadium, titanium, tantalum, magnesite, fluorite, graphite, barite, bentonite, talc, Glauber’s salt and other minerals identified resources reserves ranked first in the world, of which rare earth reserves accounted for 80% of the world, antimony ore accounted for 40%, titanium ore reserves are the sum of other countries reserves, Tungsten reserves are 4 times times the sum of other countries ‘ reserves, but the situation of the shortage of minerals remains difficult to change. Zhang Hongtao said that the demand for resources will remain high for a long time, from the global economic development trend, mining in the economic growth of the share is rising.


This trend is being confirmed by other countries around the world. U.S. President Trump, after his inauguration, to fulfill his campaign commitments, issued a variety of policies to support mining development. This March, Trump signed the “energy independence” of the Executive order. July, Trump announced the abolition of the Obama administration in the restrictions imposed on overseas coal-fired power plants to provide financing policy. In addition, the Obama administration’s ban on federal land for coal leases was lifted in the lease of federal land. This series of policies has led to a sharp rebound in U.S. coal production and exports.


Brazil has made drastic changes to its mining management system to promote its mining industry. On the one hand, the Mineral Development Bureau has been transformed into a national mineral administration responsible for mining supervision, with the aim of increasing transparency and reducing bureaucracy. On the other hand, the mining entitlements are raised to convert the tax base from net sales to gross revenue and to introduce floating tax rates in accordance with price changes. Take iron ore, for example, if the price is less than 60 dollars/ton, the tax rate is 2%, the price is 60 USD/ton ~70 USD/ton, the tax rate is 2.5%, the price is 70 USD/ton ~80 USD/ton, the tax rate is 3%, the price is 80 USD/ton ~100 USD/ton, the tax rate is 3.5% If above 100 USD/ton, 4%. In addition, the introduction of annual inspection tax on mining activities in Brazil, according to the size of the company and the stage of the project, the mining companies each year to pay 500~5000 of the tax.


Other countries and regions that have decided to raise taxes and increase taxes are still many. For example, Australia will raise the gold royalty rate from 2.5% to 3.75%, the Democratic Congo to restore mining companies import value-added tax, Tanzania levy mineral Export Inspection tax, India levy gold sales tax, the United States to raise the coal right gold tax rate.


In some countries, national mining companies have been conceived or established to strengthen national control over mining and improve competitiveness. February, Bolivia established a national lithium mining company. April, the Chilean national copper Company set up a lithium mining branch. Ecuador approved the establishment of a national mining company in June.


In order to strengthen the design and management of the top level of mineral resources, some countries have established specialized agencies. In March, for example, Colombia established the National Water Resources Commission, and in April Argentina established the Federal Energy Commission.


There are signs that mining is on the rise in the world’s leading mining-producing countries, both in terms of industry orientation and management design.


Global mining bottoming out


“China’s economy is generally good, new business mode, new model of China’s economic support is increasing, private investment is low, enterprise financing is difficult, the industrial structure is unreasonable, the resource demand is weak, the geological prospecting benefit decline and other challenges still cannot be neglected.” China’s economic integration into the global economy, we must face the international situation caused by instability and uncertainty. “Zhang Hongtao predicts that global demand for energy minerals is expected to grow and that the price of important metal minerals is rising.” Most of the “three dilute” mineral resources are in short supply, international mineral prices have risen comprehensively, and mineral exports of important mineral minerals have rebounded sharply.


Zhang Hongtao said that the innovation drive has become the new impetus of the resource industry of the Times, and environmental protection has become an important indicator of China’s energy structure adjustment. Green sustainable development has become a global consensus, hydro, wind, photovoltaic, nuclear power, shale gas, combustible ice, geothermal and other renewable clean alternative energy will maintain high growth.


The economic outlook for the US, Europe, Japan, China and other emerging markets has improved, said Ping, a researcher at the Development Research Center of the Chinese Geological Survey. In the 2017, the “simultaneous growth” of the global economic recovery in various economies has not occurred in the past decade.


Affected by the above factors, the global Mining index overall out of the downturn, into a stage of slow recovery. The junior high school level company financing, initial resource quantity discovery all presents the fluctuation type to rise. “Ping said that 2017 global solid mineral exploration investment bottoming up, the solid mineral exploration budget has risen for the first time since 2012, up 14% from 2016 to $7.95 billion.”


“Investment volatility in geological exploration can best reflect the cyclical cycle of the mining industry, which can be used as a barometer of mining industry.” Yang Bing, former director of the Center for Nonferrous Metals Mineral Geology, said that during the ~2017 years of 1991, the mining industry experienced two cyclical fluctuations, one in 1993 ~2002 and the other 2003 ~2016 years.

Sodium Molybdate


“According to the cycle theory, the mining recession should be bottoming out in 2016 and rebound in 2017.” Yang Bing said that at the China International Mining Conference in September 2017, most of the authoritative experts attending the meeting endorsed this point: 2017 will be the starting point for a new cycle of mining.


Data show that in September 2016 ~2017 September, the price of mineral products rose to varying degrees. Prices of copper, lead, zinc, aluminum, lithium and cobalt rose 35%, 27.4%, 38%, 36%, 75% and 118% respectively. Profits in China’s mining industry have increased sharply. At the same time, global mining financing mergers are also becoming active. According to the statistics, 2017 two financing amount of 71 billion U.S. dollars, an increase of 15%, the first half of the merger has been more than 2016, the acquisition amount of 28 billion U.S. dollars, compared with the same period last year 14.6 billion U.S. dollar growth 92%, mergers and acquisitions case growth of 3.3% to 222.


A global mining report released by PwC in June showed that after a sharp fall in minerals in the past few years, the world’s minerals are picking up, companies are starting to profit and their balance sheets are stronger. According to PwC, the top 40 mining companies in the market value, in 2016, the 40 mining companies total profit of 20 billion U.S. dollars, and 2015 losses of 28 billion U.S. dollars.


“The global mining industry in the short term, after 2012, mining investment continued to decline, the withdrawal of economic capacity, there are capacity consumption, the lack of new capacity input, resulting in the market will be conducive to the direction of the supply side.” Yang Bing said that in the long run, the mining industry continues to a good foundation more solid: “Along the way”, China’s demand for mineral resources will remain high, China’s environmental requirements to further reduce the old capacity, new capacity growth will be affected by a separate source.


“The technological revolution will change the pattern of resource demand. “However, Yang Bing said, this round of economic growth will not appear similar to the previous round of the super cycle, it is difficult to reproduce the extraordinary development of such a large economy as China, where other emerging economies such as India and ASEAN are gradually industrializing, and the demand for mineral resources will usher in a new cyclical growth, but it is noteworthy that the level of competition in the industry will tend to increase , demand changes and price fluctuations will be more frequent.

Copper Industry Investment Prospects Report: Copper prices continued to rise, and promote the performance of copper enterprises strong

In the first three quarters of 2017, as the average copper price rebounded, the profitability of copper enterprises increased significantly. Operating revenue and net profit of 18 sample companies increased by 13.08% and 233.52% respectively over the same period of last year with an average gross profit margin of 8.64% Over the same period increased by 0.95 percentage points, of which mining companies and high self-sufficiency rate of copper smelting business profitability increased significantly.

Benefiting from the increase in average copper price and the overall profitability of the industry, the cash flow from operating activities of copper enterprises improved significantly in the first three quarters of 2017. As the industry boom rebounded, copper enterprises to speed up capacity expansion, the overall debt burden rose slightly.

Affected by the tight supply and demand of copper mines and the weakening of the U.S. dollar, copper prices continued to rise in the first three quarters of 2017

Since 2017, the supply of copper has been limited due to factors such as the strike-stoppage of some overseas copper mines, the tougher environmental protection in China and the restriction on imports of scrap copper. In respect of copper demand, the global economy as a whole improved, the US dollar weakened, the Chinese economy maintained a high growth rate, and the downstream demand for infrastructure, electricity and home appliances boomed. The copper supply and demand as a whole tightened. The copper price continued its upward trend in the fourth quarter of 2016. As of the end of September 2017, the price of LME3 rose 18.32% at the beginning of the year to US $ 6,531 / tonne and the SHFE copper rose by 14.02% at Rmb51880 / tonne. In the first three quarters of 2017, the average copper price of LME copper and SHFE was 5,947.31 US dollars / tonne and 47,690.95 yuan / ton respectively, up 25.89% and 30.27% respectively over the same period of 2016, an obvious increase.


Germany Lansen want to buy AkzoNobel’s $ 10 billion specialty chemicals business

Bloomberg quoted anonymous sources saying Germany’s Lanxess has teamed up with private-equity firm Apollo Global Management to bid for AkzoNobel’s $ 10 billion specialty chemicals business.

Reported that Germany’s LANXESS competed with teams including CVC Capital Partners, KKR, Advent International and Bain Capital; in addition, Carlyle Group and Blackstone Group will conduct Bid separately.

Traders report that at the EGM held on November 30 this year, Akzo Nobel shareholders approved the separation of their specialty chemicals business as part of their strategy to create a focused and efficient business: paints and coatings Business and Specialty Chemicals Business.

Data show that LANXESS is a leading global supplier of specialty chemicals, core business development, production and marketing of chemical intermediates, additives, specialty chemicals and plastics. With sales of 7.7 billion euros in 2016, there are approximately 19,200 employees worldwide and 74 manufacturing locations in 25 countries.

Benzalkonium chloride

Ineos will build the “largest” butane tank in Europe

The Ineos group will build “the largest butane tank in Europe” in the Belgian port city of Antwerp.

The company announced on December 9 that it has signed an agreement with OTAGT, an oil company, to build 135,000 cubic meters of fully-cold storage and is expected to start production in 2019.

Ineos said the fully-cooled container will allow it to import butane from VLGC operators in the United States and around the world. This is a raw material for the production of butadiene.

The company will supply “competitive raw materials” to its factories in Cologne, Germany, as well as the opportunity to trade butane in Europe.

OTAGT, located on the left bank of the Sheffield River, is one of the largest independent terminals in northwestern Europe for storing, producing and distributing liquefied petroleum gas and petrochemical gases.

The project is part of Ineos investment in a resilient supply chain for European plants.

Sodium Molybdate

Chile copper production in the first 10 months fell 2.1%

According to the Bnamericas website, the latest monthly report by the Chilean National Copper Commission (COCHILCO) shows that the country’s copper production was 510,400 tonnes in October, up 15.1% per cent year-on-year, the highest rate since December 2016.


Compared with 476,500 tonnes in October, copper production increased by 7.1%. In the first 10 months, Chilean copper production was 4.47 million tonnes, down 2.1% per cent from a year earlier.


BHP’s Escandidas (Escondida) copper mine fell 13.2% per cent from a year earlier to 712,300 tonnes, after a 44-day strike by workers.


Chile’s National Copper Company (CODELCO) produced 1.5 million tonnes in the first 10 months, down 1.6% year-on-year. The production of Chukikhamatta (Chuquicamata)-Radomirotomic (Radomiro Tomic)-Harbin (Ministro Hales) is 686,100 tonnes, down 4.4% from a year earlier. The production of Teniente copper mine was 386,800 tonnes, down 1.9% from a year earlier. BHP’s smallest copper mine, El Salvador (Salvador), produced 50,000 tonnes, up 3.1% per cent from a year earlier.


The first 10 months of Codelco’s copper mine were 182,500 tonnes, up 15.4% from a year earlier, while Gabriele Mistral (Gabriela Mistral) Copper production was 102,600 tonnes, down 0.8%.


Chile’s second-largest copper mine, the Anglo-American group and Glencore’s joint-venture Coyavasi (COLLAHUASI) copper mine production of 427,600 tons, year-on-year growth of 1.2%. The production of Los Pelambresse (Los pelambres) copper mine, a Antofagasta mining company (Antofagasta Minerals), was 291,300 tonnes, down 3.6%. The production of Gadelaria (Candelaria) copper mine in Lending Mining Co. (Lundin Mining) was 128,100 tonnes, increasing by 22.7%.


Anglo-American group in Chile’s southern Company production of 289,600 tons, a year-on-year decline of 2.4%. Antofagasta and Barclays Gold’s joint venture Zardiva (Zaldivar) copper mine produced 86,700 tonnes, up 2.2%.


Freeport McMoRan (Freeport-mcmoran) holds a 51% stake, and Codelco’s 49%-owned Abra copper mine produces 64,500 tonnes, down 24.2% per cent year-on-year. BHP Billiton’s Spencer (Spence) copper mine produced 162,300 tonnes, up 20.5%, and Cerroco Rolado (Cerro Colorado) copper mine produced 53,900 tonnes, down 18.3%.


Kevlada Branca (Quebrada Blanca), a Teck resource company, produced 19,200 tonnes of copper ore, down 33.8%. Glencore’s Lomas Bayas (Lomas Bayas) copper mine produced 67,000 tonnes and grew by 1.4%.

Gamma-PGA (gamma polyglutamic acid)

In the first 10 months of this year, the global supply of primary aluminum shortages of 1.414 million tons

During the January-October period of this year, the global shortage in primary aluminum market was 1.434 million tons, with a deficit of 0.770 million tons for the full year of 2016. In the first 10 months of this year, the demand for primary aluminum was 50.22 million tons, an increase of 1.713 million tons over the same period of previous year. January-October primary aluminum production increased 947,000 tons. The total reportable inventories decreased by 30,000 tons, as of the end of October to 2,249,000 tons, equivalent to 14 days of demand, as of the end of 2016 to 2,761,000 tons. As of the end of October, the total stocks held by the four major exchanges in London, Shanghai, the United States and Tokyo were 1.488 million tons, a decrease of 477,000 tons from the level at the end of last year. Overall, global production in the first 10 months of the year increased by 2% year-on-year. China’s production is estimated at 27.23 million tonnes, which represents 56% of global production. Apparent demand in China increased by 4% over the same period of last year. China exported 303,000 tonnes of net exports in the first ten months of October. Net unlisted aluminum exports in 2015 amounted to 255,000 tonnes. In the first 10 months of this year, China’s net export of semi-finished aluminum products was 3.194 million tons, up from 3.882 million tons in the same period of last year. Aluminum output in 28 EU countries remained flat year-on-year, while North American Free Trade Agreement (NAFTA) output fell 2.1% YoY. Demand from the EU-28 increased by 113,000 tons year-on-year. January-October global demand rose 3.5%. In October 2017, the global production of primary aluminum was 4,763,500 tons, with a consumption of 4,799,100 tons.