Easter holiday keeps European antimony market stable

With many people still not back to office now, European antimony market kept quiet so far this week. Market participants expect price to remain stable at the current level.

A European trader disclosed that Chinese suppliers are offering material at USD5,800-5,850/t CIF Rotterdam for 99.65%min low bismuth antimony ingot, but the major consumers in Europe are asking for lower price at USD5,700-5,750/t. "It is impossible for us to do business at the moment," said the trader.

He holds that price will keep stable this week due to the Easter holiday, and drop by another USD50/t next week when all European people come back to work.

Another European trader confirmed the price of USD5,750-5,850/t CIF and in warehouse Rotterdam for 99.65%min standard grade two antimony ingot, and he said Chinese suppliers stopped offering because the of the Western holiday. Therefore, there is no change in the market this week.

Commenting on the future market, the trader believes antimony metal price willn' t drop to below USD5,700/t,  and stabilize at that level until summer holidays.

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Premier Wen: Market to further determine RMB exchange rate

The Chinese government would further allow the market to determine the RMB exchange rate and more flexibility to the RMB band, Chinese Premier Wen Jiabao said Wednesday.

Wen made the remarks during a speech at the fourth EU-China Business Summit held here, which attracted about 500 entrepreneurs from China and the European Union (EU).

However, the premier also emphasized China would improve the RMB exchange rate regime "in a proactive, manageable and gradual manner," with a view to gradually enabling capital account convertibility.

Some Western countries have been pressuring China to revalue its currency RMB at a faster pace, complaining the exchange rate is the cause of global economic imbalance and mounting trade deficits they suffer from.

The Chinese premier obviously has a different view on the issue. "Exchange rate is a cause, but not the sole decisive factor, for trade deficits," he said.

"Since the RMB appreciated, China has seen no dwindling exports, which is a testimony to the existing global industrial structure and the competitive advantages enjoyed by Chinese products," he added.

Wen said the RMB exchange rate against the euro is determined by the RMB to U.S. dollar rate and the U.S. dollar to euro rate in the international market, adding the recent plunge of U.S. dollar was the main cause of an appreciating euro.

The premier also emphasized the importance of "moderate" revaluation of the yuan.

"The moderate tunings of the RMB exchange rate have been a source of stability for the Chinese economy and businesses, as well as its neighboring economies," he said.

China discontinued the yuan's peg from the U.S. dollar on July 21, 2005. Over the past two years, the RMB has appreciated 11.9 percent against the U.S. dollar and 7.4 percent against the Japanese Yen.

The yuan's central parity rate was 7.3899 against one U.S. dollar and 10.9614 against one euro on Wednesday.

The Chinese government has proactively and steadily advanced reform into the RMB exchange rate regime. It widened the yuan's daily trading band against U.S. dollar from plus or minus 0.3 percent to 0.5 percent in May.
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Chinese yuan climbs to new high against USD,export business is difficile to work

China's Renminbi (RMB) climbed 101 basis points to break the 7.02 mark on Wednesday, with the central parity rate at 7.05 yuan against one U.S. dollar, according to the Chinese Foreign Exchange Trading System.

The yuan broke the 7.05 mark at 7.02 yuan against one U.S. dollar only last Thursday.

This was the 68th new high the yuan has hit since the beginning of this year, up more than four percent accumulatively.

The accumulative appreciation since July 21, 2005, when China discontinued yuan's peg to the greenback, has exceeded 8.3 percent.

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RMB Exchange Rate Might Appreciate by 5% in 2007

The exchange rate of Renminbi, the Chinese currency, is expected to appreciate by some five percent to one U.S. dollar for 7.44 yuan, according to Xinhua Economic Analysis Report released Monday.  

The report projected that the pace of RMB appreciation would befaster in the first half of 2007 than in the second half.  

Xinhua Economic Analysis Reports are regular products by a teamof more than 80 economic analysts under Xinhua Economic Information Department. The latest issue of the reports reviewed the country's ten key indices in the economic and financial sectors and made projections on possible changes in the coming year.  

In 2006, the value of the RMB rose 3.28 percent against the dollar, with an accelerating trend from 0.66 percent in the first quarter to 1.15 percent in the fourth. The central parity price closed at one U.S. dollar for 7.8141 yuan, the lowest of the year.  

The report held that the short-term RMB exchange rate will be influenced by the fluctuation between the dollar and other currencies, but in the long run, it depends on the progress of China's exchange rate reforms. Stable appreciation in small steps is generally expected.  

Earlier in December, China's State Information Center predicteda three-four percent appreciation of the yuan in 2007, while the Bank of America and Deutsche Bank expected a rise of four-six percent and 4.5 percent, respectively.  

China's foreign exchange policy is in line with the pace of China's economic development and the daily floating band is enoughto allow sufficient appreciation of the RMB, according to Chinese economist Fan Gang.  

However, some economists argued that the appreciation of the RMB is a double-edged sword, as it will make Chinese exports more expensive and therefore reduce export volume. Some export-driven small and medium companies may not be able to survive and have to lay off employees.  

"If China were coerced into really large appreciations of the RMB, it could face the same deflationary fate as Japan in the 1980s and 1990s -- and all this without reducing its trade surplus," said Ronald McKinnon in an article published Wednesday by The Wall Street Journal.  

Zhou Xiaochuan, governor of the People's Bank of China, said that there was no timetable for a further widening of the daily floating band between the RMB and the U.S. dollar.  

China raised the value of yuan by two percent to 8.11 per U.S. dollar and started linking it to a basket of currencies on July 21of 2005, and allowed it to move 0.3 percent above or below the parity rate against the U.S. dollar.  

The continuing appreciation of the RMB, a slowing world economyand the end of some tax rebates will reduce China's export growth to 20 percent year on year in 2007, the report predicted.  

From January to November of 2006, China's exports increased 27.5 percent over the same period in 2005.  
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Malaysia starts to build its first Magnesium smelting plant

The ground breaking work of Malaysia's first magnesium smelting plant started in Malaysia's northwestern state of Perak on Tuesday, which is expected to produce 900,000 tons of magnesium each year by 2010.

The 180 million-ringgit (54.5 million-U.S. dollar) plant is being constructed in Kamunting Raya Industrial Park by Commerce Venture Magnesium, a subsidiary of Ho Wah Genting Bhd.

Malaysia's national news agency Bernama said that the project was also the first one of such in Southeast Asia.

The plant is expected to come into production by the end of this year. Under the first phase, it will have the capacity to generate 15,000 tons of magnesium per annum.

Upon completion by 2010, it would have the capacity to produce 900,000 tons of the metal per annum. – Xinhua

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India: Antimony rises on increased demand

Copper prices improved between Rs 3-5 a kg in the non-ferrous metal market here on Monday on fresh buying by consuming industries, influenced by higher advices from London Metal Exchange. Marketmen said fresh buying by consuming industries in the wake of better advices from London Metal Exchange led to rise in copper prices. Rs 3 and Rs 5 to Rs 350 and Rs 375 traded copper wire scrap and copper super d rod higher per kg respectively. Copper wire bar and copper mixed scrap also gained Rs 3 and Rs 5 to Rs 370 and Rs 330 while C C rod traded higher at Rs 360 from Rs 357 per kg respectively.

Following were today's quotations per kg (in Rs): Tin ingot 860, zinc slab 150.00 zinc dross 130.00, nickel plate (4x4) 1410-1485, (9x9) 1415-1490, (4x24) 1425-1495, cadmium plate 445, Rod 430, antimony (china) 285, gun metal scrap 252, bell metal scrap 250, copper wire scrap 350, copper super d rod 375, copper wire bar 370 copper mixed scrap 330, C C rod 360, Utensil scrap 315, Mixed scrap 308, Chadripital 245, brass sheet cutting 240, bullet scrap 258, bharat scrap 250, accessories scrap 253, brass bo ring 235-245, brass radiator scrap 225 and huny scrap 250.

Lead ingot 115, Lead imported 150-152, Aluminium ingots 132, sheet cutting 127, aluminium wire scrap 122 and Aluminium utensils scrap 117. – PTI

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China's efforts to slash mineral exports pay off in 2007

China's efforts to curb heavy outflow of non-renewable mineral resources from the country have paid off.

According to the General Administration of Customs, last year China exported 120 million tons of 142 sorts of mineral resources in five categories, including non-metallic ores, metallic ores, mineral fuels, silicon and rare earth, representing a decline of 16.6 percent from the previous year.

The exports were valued at 12.6 billion U.S. dollars, up 2.8 percent. Prices of the mineral exports rose 23.2 percent on average.

Of the total foreign sales, mineral fuels accounted for 72.28 million tons, down 14 percent, and non-metallic ores made up 51.15 million tons, down 20.4 percent.

Since the second half of 2006, China has intensified control over export of mineral resources. It discontinued export rebates for almost all kinds of mineral resources and began to levy export duties of five percent to 15 percent on metallic ores that were in dearth at home and on coal, coke and some other mineral products.

However, 60 kinds of mineral products saw export reverse the downward trend. Their combined export volume amounted to 48.8 million tons, up 43.4 percent, the customs sources said. – China Mining

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