Posted on 04 Aug 2022
China's nonferrous metals sector is expected to maintain stable operations during the second half of this year on the premise that no black swan events occur, Chen Xuesen, spokesperson for the China Nonferrous Metals Industry Association (CNIA) predicts.
For H2, "overall, global economic growth may slow further, inflation may remain at a high level, and the risk of stagflation continue to build," Chen told Chinese media recently. However, he pointed out that positive factors have emerged for the Chinese nonferrous industry to perform steadily in the second half.
"A series of pro-growth polices introduced by the central government will gradually take effect, and the country's economy may improve in H2," Chen noted.
"Demand for nonferrous metals will be boosted by the development of photovoltaic, wind power and other renewable energy sources, and by lightweight automobiles and electric cars and the production expansion of new energy batteries as well," Chen also elaborated.
China's nonferrous metals output may see a 3% on-year rise for full-year 2022. Meanwhile, prices of these metals may face increasing downward pressure, but on an annual basis, their average prices may remain the same or be slightly higher than those in the previous year, Chen predicted.
As for January-June, domestic production of the ten major nonferrous metals rose by 1% on-year to reach 32.8 million tonnes, the CINA spokesman said.
In addition, sizable Chinese nonferrous firms saw their gross profits gain 22.8% on year to total Yuan 197.4 billion ($29.2 billion) in this year's first half, and their industrial added value also grew 5% on year.
Source:Mysteel Global
