China Commodities & Energy Wrap for the Week of 5 August 2010

August 5 – A massive gold mine with 500 tons of long-term reserves has been discovered in Toli county, Xinjiang autonomous region, according to the China Gold Association.

August 4 – China's crude oil consumption rose 18.6% to 215 million metric tons in 1H 2010, according to the National Bureau of Statistics.

August 4 – The government's clamp down on excess capacity of polluting industries will cut domestic demand for coal by 100 million tons this year, warned China Coal Association director Wang Xianzheng.

August 4 – China's energy consumption grew 11.2% in 1H 2010, slightly higher than its 11.1% economic growth, according to the National Bureau of Statistics, the National Development and Reform Commission and the National Energy Bureau.

August 4 – China produced more than 485 million tons of iron ore in 1H 2010, up 28.7% on a year earlier, and is expected to produce 1.15 billion tons this year, 30% more than last year, according to China Iron & Steel Association deputy director Luo Bingsheng.

August 3 – Pork prices averaged ¥24.1/kg ($1 = ¥6.8) in China's 36 major cities, according to the National Development and Reform Commission.

August 3 – It is not likely China will import 17 million tons of corn in five years as domestic production can largely meet demand, argued Chinamaize.com.cn president Feng Lichen in response to the claim.

August 3 – Shanxi province exported 708,000 tons of coal valued at $300 million in 1H 2010, both more than six times the amounts a year earlier. The volume made up 50.6% of China's total coal exports over the period.

August 2 – China's demand for oil hit a monthly record of 36.74 million tons in July, or 8.98 million barrels a day, according to Platts Energy. The country's demand reached 211 million tons, or 8.54 million barrels a day, in 1H 2010, up 13% on 1H 2009.

August 2 – Jinchuan Group, China's largest nickel producer, marked up the price of the metal to ¥161,000/ton from ¥158,000/ton to follow market movements. It raised the price by ¥2,000/ton on July 27.

August 1 – A massive mine estimated to have one billion tons of coal and five billion m3 of coal seam gas was discovered in northern Liaoning province. It is one of the largest discoveries of its kind in northeastern China.

July 30 – China will import 7.2 million tons of corn this year, accounting for less than 5% of domestic consumption, according to the National Development and Reform Commission.

July 30 – The China Iron & Steel Association called on the central government to map out policies encouraging domestic iron ore mining and insuring at least a 40% self-efficacy ratio.

July 29 – Taiyuan Iron & Steel Group Co signed a deal with China Nonferrous Metal Mining Group Co for a Burmese nickel mine that is expected to deliver 85,000 tons of ferronickel a year when operational in 2011. Nickel makes up 70% of stainless steel making costs in China, whose domestic output of the metal meets only 30% of demand.