China Nonferrous Metal Industry’s Foreign Engineering and Construction Co said on Monday that it would increase its stake in Australian miner Terramin Australia Ltd in a deal worth 32.35 million yuan ($5 million).

Terramin will sell 12.3 million shares to China Nonferrous Metal at A$0.37 ($0.406) apiece in a private placement that would increase the holdings of the Chinese developer of non-ferrous metal resources to 19.86 percent from 14.38 percent, according to a statement to the Shenzhen Stock Exchange.

Terramin will use the share sale proceeds to develop two zinc and lead mining projects, the statement said.

Terramin posted a loss of A$9.875 million last year and its assets totalled A$147 million.

Chinese companies have been eager to secure supply of raw materials through overseas acquisitions to meet rising domestic demand in the world’s fastest-growing major economy. ($1 = 6.437 Yuan) ($1 = 0.910 Australian Dollars)

Metals prices pushed upward amid the same unresolved concerns that moved China’s futures markets Tuesday, including the ongoing strike at world’s largest copper mine and the unbroken stalemate in the US over raising the country’s debt limit.

The most active copper contract, for October delivery, rose about 0.6 percent on Wednesday to settle at 72,830 yuan ($11,307.08) per ton on the Shanghai Futures Exchange. The contract jumped 0.8 percent at the market’s opening, following the rise in international copper prices overnight.

The benchmark three-month copper contract on the London Metal Exchange rose 1.7 percent in Tuesday’s session, but then retreated on Wednesday. It was trading at $9,821 per ton, down 0.2 percent, at 3:15 pm Beijing Time on Wednesday.

SHFE gold prices rose steadily on Wednesday, with the most traded contract rising 0.4 percent to settle at 336.84 yuan per gram. The price of gold for immediate delivery hit a record high of $1,624.55 an ounce on the COMEX on Wednesday.

Other SHFE base metals benefited from the rise in international prices overnight, with the most active aluminum contract spiking 1.9 percent to settle at 18,210 yuan per ton. The contract was up more than 3.5 percent for the week due to strong fundamentals, according to Tong Changzheng, an aluminum analyst with Huatai Great Wall Futures.

A bulletin on the China Nonferrous Metal Industry Association website highlighted a rumor that may have influenced aluminum futures, according to an analyst surnamed Yuan with Shanghai East Asia Futures.

The bulletin said that Indonesia may impose export restrictions on aluminum ore to China, though probably not this year.

“China, the largest consumer of aluminum, imports 80 of its aluminum ore from Indonesia, so the change could constrict supply,” Yuan said.

Zinc for October delivery rose 1.3 percent to settle at 19,010 yuan per ton.

The September delivery lead contract gained about 1 percent to settle at 17,740 yuan per ton at close on Wednesday.

According to the data for the first six months of the current year, Ukraine’s metal product exports increased by 3.1 percent year on year to 12.587 million mt. In June alone, Ukraine’s metal product exports declined by 2.2 percent compared to May, to 2.43 million mt.

In the given period, Ukraine registered a 9.7 percent increase year on year in its metal product imports to 804,000 mt. In June alone, Ukraine’s metal product imports increased by 7.3 percent compared to May, rising to 152,000 mt.

The Shanghai Composite Index rose 0.76 percent or 20.47 points to close at 2,723.49 points today on transaction value of 92.08 billion yuan.

The Shenzhen Component Index was up 0.90 percent or 108.33 points to close at 12,116.86 points today on transaction value of 77.08 billion yuan.

The non-ferrous metals sector extended yesterday’s increase. The share prices of aluminum stocks rose on rising aluminum prices. Two aluminum stocks, Yunnan Aluminium (000807, 9.96, +10.06%) and Jilin Liyuan Aluminum (002501, 29.38, +10.00%) surged by their daily limits. Fujian Minfa Aluminium (002578, 15.40, +7.17%), Shandong Nanshan Aluminium (600219, 9.61, +5.37%) Jiangsu Alcha Aluminium (002160, 15.43, +5.32%) all rose above 5 percent. Aluminum Corporation of China (601600, 10.69, +2.99%) said it will make full impairment provision for the entire carrying value of approximately 340 million yuan in expenditure incurred for the Aurukun development project in its 2011 Semi-Annual report.

Gold stocks all finished with gains today, such as Zhongjin Gold (600489, 29.02, +0.87%), Shandong Gold Mining (600547, 49.84, +1.01%) and Henan Yuguang Gold & Lead (600531, 27.72, +2.02%). Guangdong Orient Zirconic Industry Science and Technology (002167, 43.50, -0.68%) dipped reporting a 184.77 percent year-on-year rise in first half 2011 net profit attributable to shareholders to 58.7 million yuan.

Beijing Trust & Far Technology (300231, 31.12, +10.00%) and Guomai Technologies (002093, 16.47, +10.02%) led gainers from the information technology sector today. Many stocks from this sector rose more than 5 percent, including Beijing Venustech (002439, 39.60, +7.03%), Beijing TRS Information Technology (300229, 20.73, +6.86%), Fiberhome Telecommunication Technologies (600498, 27.74, +5.36%) and China Kejian (000035, 9.82, +5.03%). Zhejiang Dahua Technology (002236, 47.40, +4.87%) reported a 64.32 percent year-on-year increase in net profit to 129 million yuan in the first half 2011.

Suzhou Electrical Apparatus Science Academy (300215, 106.70, +10.00%) surged by its daily limit after it posted a 72.18 percent year-on-year increase in first half 2011 net profit to 43.56 million yuan.

Several rail-related companies stopped declining. Beijing Jiaxun Feihong Electrical (300213, 19.11, +4.08%), Qingdao Tgood Electric (300001, 20.58, +1.48%), CSR Corporation (601766, 5.85, +0.52%) and China CNR Corporation (601299, 5.69, +1.07%) all ended with increases today. Meanwhile, Beijing Century Real Technology (300150, 26.90, -0.96%) and China Railway Group (601390, 3.75, -0.56%) fell less than 1 percent.

Airlines did not continue gains made in the last two days. Air China (601111, 10.07, -2.89%), China Southern Airlines (600029, 8.51, -1.96%), and China Eastern Airlines Corporation (600115, 5.56, -0.71%) all fell today.

Banks continued to fall. China Merchants Bank (600036, 12.26, -0.73%), Bank of Communications (601328, 4.79, -0.62%), China Construction Bank Corporation (601939, 4.71, -0.42%) and the heavyweight Industrial and Commercial Bank of China (601398, 4.28, -0.23%) all traded lower. Shares of Hua Xia Bank (600015, 10.23, -0.68%) had not increased for 8 straight trading days.

According to the Ukrainian association of tube producers UkrTruboProm, in the current year Ukraine’s production of steel pipes may go up by 15-20 percent compared to 2010, to 2.2-2.3 million mt per year. However, the expected level of steel pipe production in 2011 is still lower than pre-crisis level of 2008, when Ukrainian companies produced 2.522 million mt of pipes.

Brazilian steel mills are wary of China taking market share for finished steel products and the import of goods with a high concentration of Chinese steel, a national producer group said Tuesday.

Amid global steelmaking overcapacity, the weakness of China’s yuan and the strength of Brazil’s real is an attractive combination helping steel imports surge, particularly from China, Marco Polo de Mello Lopes, chief executive of the Brazil Steel Institute, said at the Coaltrans Brazil conference in Rio de Janeiro.

“There were 4.2 million mt in indirect imports of steel in 2010 of materials of a high steel content such as autoparts and together with finished steels this totals around 10 million mt,” Mello Lopes said. “This is the capacity of over two steel mills, or even the largest group in Brazil, so we can see how dramatic this situation was in 2010.” (more…)

Antofagasta Plc, the operator of four copper mines in Chile, expects to benefit from “huge demand” for metals as China and other emerging economies develop, said Chief Executive Officer Jean Paul Luksic.
“There’s a tremendous demand push by the industrialization and urbanization of China,” Luksic, whose billionaire family controls Antofagasta, said today in an interview in London. “You see huge demand for all these metals.”
The company will continue to invest in new mines in Chile and overseas to meet demand from the so-called BRIC economies of Brazil, Russia, India and China, Luksic said. Mine projects will “take time” to meet rising demand, he said. (more…)

China, the largest steel maker in the world, saw its output of crude steel rise 7.8% year on year to a monthly record of 60.25 million metric tons in May, according to the latest statistics released by the National Bureau of Statistics.

The crude steel output was 2.07% more than the 59.03 million metric tons in April.

The NBS said earlier that the country’s crude steel output grew 8.3% year on year to 229.71 million metric tons in the first four months.

Last month, China’s output of steel products increased 10.6% year on year to 76.37 million metric tons. The figure was higher than the 73.15 million metric tons in April.

Baoshan Iron and Steel<600019>, a leading steel producer in China also known as Baosteel, said earlier this month that it would cut its main product prices for July bookings because of weak demand, reflecting the second price reduction since September 2010.

The 77 large- and medium-sized steel enterprises in China earned a combined net profit of RMB 32.98 billion in the first four months of this year, 2.12% less than in the same period of last year, said Luo Bingsheng, a senior official with the China Iron and Steel Association, China Knowledge reported earlier.

Inventory cost of imported raw materials like nickel, scrap and molybdenum weighs heavily on producers.

The demand for stainless steel has got much to do with the state of development of an economy and also how much emphasis it gives to infrastructure creation. It then says much of the scene here that India was ranked the world’s fourth-largest producer of this metal behind China, EU and Japan and its third-largest user after China and EU in 2010. Recording a growth of 12 per cent in crude stainless steel production to 2.9 million tonnes (mt), which at finished product point became 2.6 mt, the Indian demand at 2.4 mt, too, registered double digit rise. (more…)

Weak outlook of Euro zone due to ongoing tensions of Greece bailout, demand declines in China took Indian metals markets on a ride.

Most of the base metals went for a toss since the opening quotes even after closure of London Metal Exchange (LME). Technical selling persisted in the metals after a sober run last week.

Indian Copper futures witnessed shorting that took prices towards Rs 413.5 per kg, the prices are now at Rs 414.8 per kg. Nickel was down by 1.2% to trade at Rs 1040 per kg. Meanwhile, Lead slumped to Rs 114 per kg, down 0.7%.

Elsewhere, China lead battery plants in Zhejiang, Guangdong, Fujian, Henan and Sichuan had been closed down following a central government order to root out heavy metal pollution problems in the sector. Lead is extensively used in mobile phones and e bikes in China.

Both of which compounded account for more than 70% of the lead demand. With closure of the battery-manufacturing units the demand is expected to slow down.

In Europe, Greece has already failed to gain a vote for austerity measures and was on a verge of bankruptcy eagerly awaiting IMF and Euro zone relief measures.

Jobs data remained quite dismal in US. For the week ending May 21, an increase of 10000 was registered from the previous week’s revised figure of 414000. Overall the situation for world economics has plenty of if’s and but’s to answer.

Dollar gained against the EURO on Monday with pair exchanging hands at 1.4285 against 1.4321 last week.