Singapore 29/08/2016 - Total profits among China's non-ferrous metal smelters and fabricators rose 23.2 percent year-on-year to 83.07 billion yuan ($12 billion) in January-July this year, according to data published by the Chinese National Bureau of Statistics (NBS) last Friday.
The latest data shows profit growth in the industry continuing to gather pace.
The profit growth in the industry improves from growths of 16.8 percent in January-June, and 13.4 percent in January-May. In January-April, the industry’s profit was positive for the first time after registering year-to-date declines since September 2015 and in the first quarter of this year.
Total revenue in the industry increased 2.9 percent year-on-year to 2.9 trillion yuan in the first seven months of the year, which was close to the 3-percent year-on-year growth in January-June.
Meanwhile, total profits in the Chinese non-ferrous metals mining sector increased 2.6 percent year-on-year to 24.08 billion yuan in January-July, reversing a 2.5-percent-decline in January-June. Total revenue in the sector gained 5.1 percent year-on-year to 350.37 billion yuan in January-July.
Chinese industrial profits grew 11 percent year-on-year to 523.01 billion yuan in July, versus a 5.1-percent growth in June. Year-to-July profits increased 6.9 percent year-on-year to 3.52 trillion yuan, a rise of 0.7 percentage points from growth in the first half.
The NBS attributed the stronger January-July overall number to improved sales, lower costs, a rebound in commodity prices and a low base.
While industrial profit growth has accelerated, market demand has yet to see obvious improvement in demand, it cautioned. Companies continue to see long payment terms for accounts receivable, increasing administrative costs, while facing overcapacity, it added.
The NBS’ survey includes companies with annual revenues of 20 million yuan and above.