Output of Ten Non-ferrous Metals Increased Significantly Especially Tungsten and Cobalt

On the 13th, the 8th meeting of the 3rd Board of Directors of the China Nonferrous Metals Industry Association was held in Beijing. At the meeting of the Party Committee Secretary and President Chen Quanxun, in 2017, the development of the non-ferrous metals industry showed a pace of growth, structure, and efficiency. The output of non-ferrous metals was 55.01 million tons, a year-on-year increase of 2.9%; non-ferrous metal industrial enterprises (excluding independent gold companies) realized a profit of 229.8 billion yuan, a year-on-year increase of 33.2%.

The increase in industry profits in 2017 was mainly due to the rebound in prices. According to the data, in 2017, the average spot prices of copper, aluminum, lead and zinc, the main metals in the domestic market, increased by 29%, 16%, 26% and 43% respectively year-on-year. Cobalt, as a new energy industry support material, has seen a sharp increase in price increase, reaching 97%. The price increase trend of tungsten, molybdenum, tin, antimony, and rare earths is also very obvious.

With the market being in a good environment, corporate profits have continued to improve. According to statistics, the main business income of 8,224 non-ferrous metal industrial enterprises (excluding independent gold companies) has reached 5.6 trillion yuan, a year-on-year increase of 16.1%. The industry-wide asset-liability ratio was 62.3%, a year-on-year decrease of 1.4 percentage points. The industry's overall strength and core competitiveness have been enhanced, and deleveraging has achieved encouraging results. According to Chen Quanxun, in recent years, non-ferrous metals industry companies have made significant progress in reducing costs and increasing efficiency by strengthening internal management and stimulating employees' endogenous motive power. Some companies will comprehensively control the cost of products from the industry in the short term. After the 30% increase in the ranking, the top 40%, and some companies reduce the overall cost by nearly 30% in the short term.

Chen Quanxun pointed out that in 2018, the development of the non-ferrous metals industry has many favorable conditions, but it also faces many difficulties and challenges. The favorable factors are mainly reflected in the following: the world economy is showing a recovery trend, China's economic growth is better than expected, and support for the development of the real economy is accompanied by many measures. The confidence and ability of entrepreneurs to cope with difficulties and challenges are increasing. The unfavorable factors are mainly manifested in the following factors: The unstable international situation persists, trade protectionism rises, domestic demand is generally weak, supportive policies are conducted slowly, and the industry's new kinetic energy cultivation is slow. Uncertainty factors remain complex.

In view of the next stage of industrial development, Chen Quanxun suggested that in 2018 and in the future, the non-ferrous industry should not relax from the tight supply-side structural reforms; put the promotion of high-quality development in the first place; and take technological innovation as a breakthrough in the industry's shortcomings. The most important thing is to internalize the concept of green development in the heart outside the line; to put the risk of prevention and control to a more prominent position; to reduce costs and increase efficiency as an important starting point to stimulate vitality and other six areas.