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Wednesday, 25 November 15
BIG CHINESE COPPER PROCESSORS DEFEND MARGINS THROUGH R&D, SAYS FITCH
Fitch RatingLarge Chinese copper processors are focusing on higher value-added products and investing in R&D to enhance their technical know-how to maintain margin resilience amid a prolonged industry downturn, says Fitch Ratings.

Fitch expects Chinese copper processors to continue to record thin margins due to overcapacity and the sustained weakness in copper prices. Copper product prices may continue to fall more rapidly than the prices of copper cathode and copper scrap - two major raw materials for copper processors - due to slowing demand. At the same time, increasingly stringent labour and environmental protection requirements will raise costs, which will further squeeze processors' profitability. More than 20% of copper processors in China have been posting net losses for the past three years.

However, Fitch expects large companies with R&D capability, technical know-how and economies of scale to record resilient margins. For example, leading players such as Jiangxi Copper Co., Ltd and Tongling Jingda Special Magnet Wire Co., Ltd maintained stable copper processing gross profits of over CNY3,300 (approximately US$ 516.55) per tonne on average in 2014 and 1H15, while many of their smaller peers had gross profit of under CNY1,000 (approximately US$ 156.53) per tonne or posted losses.

Fitch expect large, leading Chinese copper processors to continue to actively invest in R&D of high value-added copper products, diversify their product offerings, and pursue vertical integration. For example, Tongling Nonferrous Metals Group Co., Ltd is developing precision copper foil for use in lithium batteries and other high value-added copper products.


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Sunday, 22 November 15
INDIA COULD PROVIDE SILVER LINING FOR SHIPPING INDUSTRY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The rise of India as a global player in the shipping market could be just a couple of years away, as the country has the potential to become a seco ...


Friday, 20 November 15
U.S. COAL PRODUCTION FOR THE WEEK ENDING NOVEMBER '14; NO CHANGE FROM LAST WEEK
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 16.5 million shor ...


Friday, 20 November 15
NO IMPROVEMENT SEEN IN NEAR-TERM COAL DEMAND; SWAPS CLOSE LOWER
COALspot.com: Indonesian coal swap for delivery Q1 2016 declined month on month and flat on week over week. Price of coal seen no improvements this ...


Friday, 20 November 15
CHANGING CRUDE SUPPLY TRENDS MAY HELP EUROPEAN REFINERS - FITCH RATINGS
COALspot.com: Changes in global oil supply trends, including high Russian production, the expected renewal of Iranian heavy crude exports and the p ...


Thursday, 19 November 15
CHINA STEEL PRODUCTION CAPACITY TO PEAK IN 2016 - FITCH RATINGS
COALspot.com: Fitch Ratings today says that China's steel production capacity is likely to peak in 2016, with capacity elimination over the nex ...


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