Singapore 25/08/2016 - In response to a June notice from China’s State Council which listed Beijing’s guidelines and targets for the Chinese non-ferrous metals industry, the China Nonferrous Metals Industry Association (CNIA) has come up with a work plan which includes expanding commercial stockpiling from aluminium to other non-ferrous metals.
The CNIA will form a coordination team with main industry producers to develop stockpiling, the industry body said in a notice published on its website this week.
Following a successful experience from developing aluminium commercial stockpiling, this will be extended to other main non-ferrous metals, it said.
CNIA did not give a timeline for its plan.
Under its guidelines for the industry, China’s State Council had said in June that China plans to increase its reserves of some non-ferrous metals "appropriately" and overhaul the system of stockpiling as carried commercially and officially.
The country will conduct trials for commercial stockpiling at businesses in the non-ferrous metals sector and will encourage financial institutions to support such stockpiling, it said then.
The commercial stockpiling of aluminium appears to have been set in motion following word of six aluminium smelters forming an official joint venture, though market participants reckoned current domestic aluminium prices - which has rebounded since November last year - do not warrant stockpiling action.
CNIA also said it will work with government authorities on checks to prevent smelting overcapacity in the nonferrous metals industry while it tackles the overcapacity problem in the aluminium sector.
Together with government authorities and other downstream industry association, it will also look to expand aluminium and copper usage in applications, it added.
The State Council in June had also listed further guidelines including controlling new capacity, phasing out uncompetitive and excess capacity and developing downstream processing - the first two are seen as particularly targeting the Chinese aluminium industry.
Following production cuts late last year, Chinese aluminium smelters are restarting idled capacity after the rebound in domestic aluminium prices, with analyst expect most restarts and new capacity start-ups to concentrate in the fourth quarter of this year.