On August 3, the Non-ferrous metal held a press conference on the first half operation of the non ferrous industry in the 2021, jia Mingxing, member of the Standing Committee of the Party Committee of the non-ferrous Metals Association, vice-chairman and secretary-general of the non-ferrous Metals Association, answered questions from Reporters and representatives of enterprises on such hot issues as the operation of the non-ferrous metals industry in the first half of the year. The last press conference was still talking about the impact of the "two high, one capital" label on the non-ferrous industry. Today, Non-ferrous metal processing is no longer part of the "two high" category. How do you see this change in just a few months? What's the next step for the non-ferrous group? In the past, Non-ferrous metal processing was defined as the "two high" category, which was disadvantageous to the development of the industry and affected the industry enterprises in various aspects such as bank financing. This year, the National Development and Reform Commission re-defined "two high" , based on comprehensive energy consumption and other data, the non-ferrous Metals Association recommended that copper, lead and zinc smelting, copper and aluminum calendering, rare earth calendering and other processing into the "high energy consumption, high pollution" category, and reported to the National Development and Reform Commission. Now finally take off the "hat" , this industry enterprises follow-up development, especially the financing of small and medium-sized enterprises is beneficial, is a good thing. In the future, the Non-ferrous metal industry will contribute to the achievement of the "double carbon" target. Recently, the state grain and material reserves of copper, aluminum, zinc continuous release of state reserves. Combined with the national measures against the rise in commodity prices, the Association of non-ferrous metals on the relevant content can be interpreted? The State Council attaches great importance to market price fluctuations in related industries. In order to Macroeconomic regulation and control the prices and promote the steady development of the market, the state grain and material reserve has released the state reserves of copper, aluminum and zinc. But the releases were small, with aluminium, for example, sometimes trading up to one hundred thousand tonnes a day, and the national stockpile selling just tens of thousands of tonnes. As a result, the release of national reserves is more of a directional move. Supply and demand will always be the fundamentals of the market. Price should reasonably reflect the results of the enterprise, if long-term below the cost line, will also bring adverse impact on the enterprise operation, the price increase will ultimately be decided by the market. How will the recent official opening of the carbon market affect the Non-ferrous metal industry? What will the industry do next in a carbon-neutral age? The Central Committee of the Communist Party of China (CPC) has proposed a "double carbon" target, aiming to achieve carbon peak by 2030 and carbon neutrality by 2060. The non-ferrous industry has responded positively and done a lot of work, to the National Development and Reform Commission, the Ministry of Ecology and Environment, the Ministry of Industry and Information Technology and other relevant departments to provide a large number of basic industry data, and with the relevant government departments for a number of discussions, put forward the industry to achieve the "double carbon" target specific program. In the future, projects with relatively high energy consumption and excess capacity such as copper smelting and lead and zinc smelting will be limited. At present, the power industry carbon emissions trading has been listed, Non-ferrous metal, steel and other raw materials industry is also actively preparing for the opening of the carbon market. Market-based carbon reduction is the most effective means, but it is not easy to continue to operate, which needs to do a good job in the basic work, to ensure fair and effective trading. The non-ferrous Metals Association will actively cooperate with the national research and judgment, under the "double carbon" target principle, take the initiative to promote the implementation of the relevant plan.

From April last year to June this year, commodity prices rose, especially for some Non-ferrous metal varieties. Among them, copper prices will usher in a long-term Bull Market Cycle? In the process of large price increases, how do Non-ferrous metal do in the hedging business? Especially state-owned enterprises. In addition, in addition to hedging, the Association in response to a sharp rise in prices to do what? There are multiple reasons for the rise in Non-ferrous metal prices. On the one hand, it's supply and demand. On the demand side, the Chinese economy has recovered very quickly since last year, and the demand for Non-ferrous metal has increased rapidly. On the supply side, many related raw materials, such as copper, aluminum, lead and zinc, are highly dependent on the outside world and affected by the epidemic, these materials are in short supply. A combination of supply and demand pushed up prices. On the other hand, now that the global economy is in the doldrums, countries are implementing more loose monetary policy, Macroeconomic regulation and control, currency circulation is too large, currency depreciation. Since the bulk of raw materials are priced in dollars, the depreciation of the dollar inevitably raises prices. Although the overall price of the Non-ferrous metal sector rose, the rise in lead, zinc, bismuth and antimony was small, and the companies concerned were still losing money; aluminum prices remained basically at the prices of the 1990s, and the companies concerned suffered heavy losses, many historical debts, such as the discharge of red mud, have not been resolved. For these metals, therefore, it should be called a return to price. In copper, the price has risen from more than 20,000 yuan per ton in the 1990s to nearly 70,000 yuan per ton, an already high rise supported by decades of high consumption in China. Now, the country's copper consumption will still usher in growth, but the increase will not be as large as in the past, so I personally judge that copper will not have too high price space. Besides the impact of supply and demand and currency depreciation, the price increase of oil, basic materials and electricity is also an important factor, for which the non-ferrous industry can not be controlled and can only adapt to the market. However, the trade association has been stepping up publicity, hope that enterprises do not speculation, so that prices skyrocketed. It is very difficult to hedge in the process of price fluctuation, the price rises, thanks to. However, the combination of hedging with actual production and consumption can lock in profits and is a good guarantee for the operation of key enterprises in the industry. In the first half year, the import and export volume of copper, aluminum and other major metal varieties increased year on year. What are the reasons for the increase and decrease in the import and export volume? What is the impact on the business? What are the next trends? The Non-ferrous metal industry is a high energy consuming industry, and the country does not want high energy consuming products to be exported directly, but at present, our country's competitiveness in high-end equipment such as machinery and electronics is very strong, these high value added downstream products indirectly carry out Non-ferrous metal products such as aluminum. At the same time, the export of low-end products such as building materials has become increasingly difficult. However, some countries rely on Non-ferrous metal products, so even with tariffs, they end up importing Chinese products from other countries. As a result, exports have risen and fallen. In the future, we must improve the equipment and technology of the entire Non-ferrous metal industry, develop high-end, high-value-added products, eliminate dumping of low-end products, and ensure the competitiveness and profitability of exports. Not long ago, the economic performance of the central enterprises was announced. In the first half of 2021, the economic performance of the central enterprises improved significantly, and their development tenacity continued to show. Intensive operation of a number of major engineering projects has become a bright spot in economic operation. I would like to ask, the non-ferrous industry in the commissioning of these major projects played a role in the Non-ferrous metal of the development of new materials industry? At present, the non-ferrous industry enterprise benefit is very good, therefore, fixed assets investment also increased. Some of the emerging projects we are investing in are no longer doubling in size, but are high-end, high-tech. In addition, many industrial enterprises are promoting the development of intelligentization and digitalization. For example, some time ago, Zhuye moved lead and zinc smelting from Zhuzhou to Hengyang. When I visited, I saw that the whole process of lead and zinc smelting has realized intelligentization and digitalization, it's easy to be intelligent in machining, but Non-ferrous metal is very complex, and it's very difficult to collect data in a smelting furnace. It can be said that currently Zhuzhou smelter is the most advanced, most intelligent, most digital lead and zinc enterprises in the world, unique, developed countries can not do. Such a high-end project combined with digital economy and intelligent economy must be very competitive. The investment growth rate is very good for the follow-up development of the whole industry.

While concepts such as "low-carbon Environmental Protection" , "two-mountain theory" and "double-carbon target" have taken root in the hearts of the people, there has been a rapid growth in the areas of Non-ferrous metal recovery and resource reuse, such as the recovery of waste aluminum and copper, the comprehensive utilization of retired lithium and electricity, etc. , could you give us some basic information about this kind of plate? What suggestions do you have for the development of Resource Regeneration and recycling? The smelting process must have carbon emissions, we have been trying to achieve the same minimum carbon emissions, to minimize emissions, reduce energy consumption. In the field of renewable metals, China's non-ferrous industry should be the best in the world at present. The total amount of renewable metals in China is about 15 million tons, larger than the total amount of primary metals in the United States. The energy consumption of regenerated metals is only about 5% of that of primary metals. The development of regenerated metals can not only promote the recycling of resources, but also help to reduce carbon and carbon. However, the related enterprise dispersion is too big, the small and medium-sized enterprise occupies the proportion to be many, the management insufficient standard. Therefore, the state should issue some policies to strengthen industry management and avoid secondary pollution in the process of regeneration. Over the years, the Non-ferrous metal has established a long term, comprehensive strategic partnership with the Shanghai Futures Exchange. What are the requirements and expectations of the Association for the Futures Market to further serve the high-quality development of the non-ferrous real economy and the sound operation of the clients in the service industry? Jia Mingxing: Many non-ferrous enterprises, especially those in the top 50 list, have basically participated in the futures market. Both the non-ferrous Association and the Institute of the last period have taken the market demand as the guide, played their respective advantages and carried out fruitful work, the collaboration has also been very fruitful. Shanghai Futures Exchange has played a great role in stabilizing the production and locking the interests of enterprises in the non-ferrous industry. Hope that the exchange and the association together, the industry to do some targeted training, so that enterprises really effective use of futures this tool. To high-quality development, in addition to the green intelligent, but also the quality of products have higher requirements. Therefore, the previous period can certify the quality of a variety, if it can not achieve certification, can not participate in futures trading, which has played a supervisory role in improving product quality. For how to do a good job in overseas operations, and how to deal with the risks of overseas operations, non-ferrous enterprises have any suggestions and guidance? On the whole, the non-ferrous industry has done a very good job in overseas operations, non-ferrous enterprises "go out" to obtain resources from overseas, to protect the development of the industry has made a great contribution. Overseas many countries have very good resources, but the basic conditions are very poor, there is no mining conditions, but the Chinese have done it. That's the secret of our success, Down to Earth, hard work. In order to proceed from reality, enterprises must not aim too high. The non-ferrous Metals Association has set up an international industrial alliance. Chinese enterprises should unite and form a force to negotiate terms with the local government, because we "go out" in addition to obtaining resources, will certainly drive the local economic development, to the local employment, for the local people, for the host country benefits. Win-win is the measure of success. Some time ago, the non-ferrous Metal Association had an exchange with the head of the Congolese Embassy in China. The Congolese Embassy in China did not know that China had so many projects in the Democratic Republic of the Congo. After I gave him an introduction, he was very moved and said he must go back to implement the situation. Therefore, overseas operation, we must understand the situation, do not over-reach. It is very difficult to operate in a foreign country, the risk is very big, be sure to know more about the situation, Chinese enterprises abroad should know more about the local situation. There is now an indisputable fact that we must "go out" , do not go out, the industry can not continue. But "go out" must pay attention to the success rate, we need to do the work in front of a solid point, which countries can do, which countries can not do, to understand this situation. At the same time, I hope that industry enterprises will have more contact with non-ferrous associations. We should form a force. It is difficult for a company to talk to the local government, but for a group to talk, they will take it seriously. At the national level, we hope that the Ministry of Foreign Affairs will give support and negotiate with the countries concerned through the national strength. At the same time, we also hope to report the good projects to the National Development and Reform Commission and miit in a timely manner, and at the same time, we hope that the acquisition of overseas resources, hope that the domestic industry policy can have some concessions, the association has been doing this work, but also hope that the relevant enterprises to communicate with the association, the industry to do a good job of overseas resource development. What are the implications for the Non-ferrous Metal Market?

This issue is very hot, and the sino-us negotiations did not go well in the previous paragraph, but I think it is better to talk about it than not to talk about it. In the national interest, we don't want to break up with the United States. With such a large volume of trade between China and the United States, the degree of mutual dependence between China and the United States is very high, and neither can be separated from the other. But we can not expect too much from china-us relations. There will be constant frictions, so we must have a common heart to look at this issue. The china-us relationship has an impact on the economic development of the two countries first and foremost, but the strong momentum of the Chinese economy makes us less affected by it. In terms of specific industries, I personally feel the impact on our industry is not too great. Non-ferrous metal exports, in fact, are indirect exports, are high-end exports, so the impact on us will not be too great. But a bad relationship between the Non-ferrous metal and China could have an impact on market expectations, as large commodities are priced in futures, which are closely tied to finance. China and the United States are the world's first and second largest economies and have a great impact on the global economy, so short-term, or even some long-term, friction will certainly affect price volatility, but the impact is not too great. "double-carbon" background, the Non-ferrous metal industry should start from what aspects of work? In the "double carbon" background, industry enterprises to do a good job in basic work, carbon trading for each enterprise has a base check, the base can not check small, otherwise the enterprise will suffer. How to reasonably let the enterprise do not suffer losses, is to do a good job of the foundation. At present, we have to actively advise the country, how to make carbon trading industry can effectively reduce carbon, but also promote the development of the industry, we need to put forward our wisdom, put forward a good plan. 

Source: Shanghai non-ferrous Metal Net