23 April 2012
Commodity Online India Limited
BEIJING, April 23 — China is reportedly running out of 11 critical minerals and will face a serious shortage of them by 2020 says Xu Shaoshi Minister of Land and Resources.
“The county s consumption (of mineral resources) has grown faster than its production while the expansion of production has outpaced the exploration. That partly explains why there has been a shortage” Xinhua new agency quotes Shaoshi who also added that China will have to rely substantially on imports in order to meet its demand 10 20 years down the line.
More than 50% of China s demand for copper aluminium etc are now met through imports. China has been the biggest driver of commodity markets for the past decade be it metals or energy. The country already accounts for the lion s share in copper zinc lead consumption. It is one of the biggest consumers of gold and silver and the second largest consumer of crude oil.
And Shaoshi s statements points only to China s imports getting bigger and bigger something that should cheer up a majority of commodity bulls at a time when a lot of noise is made about the Chinese hardlanding and the effect it will have on the commodity markets.
Published by HT Syndication with permission from Commodity Online.
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China running low on mineral resources, says senior official
23 April 2012
China Economic Review – Daily Briefings
Copyright © 2012 China Economic Review Publishing. All Rights Reserved
China is running short of 25 kinds of mineral resources, including 11 that are crucial to the country’s economy, said a senior official on Sunday, Xinhua News Agency reported.
The country will face a serious shortage of mineral resources by 2020 as it consumes an increasing amount of them to promote its industrialization, urbanization and agricultural modernization, Minister of Land and Resources Xu Shaoshi told Xinhua in an exclusive interview to mark the 43rd “Earth Day.”
The prediction was based on surveys of recoverable reserves of 45 kinds of major minerals, Xu said, adding that China will have to sharply increase imports of minerals in short supply to meet demand over the next 10 to 20 years, the news agency reported.
China Economic Review Publishing
Metal & Mining; Metal Ore Mining
China Depends More on Some Imported Resources
23 April 2012
SinoCast Metals & Mining & Chemicals Beat
Copyright 2012 SinoCast LLC. All Rights Reserved.
BEIJING, April 23, SinoCast — China’s reliance on imported petroleum, iron ore, refined aluminum, refined copper, and potash salt ore have all been over 40 percent, disclosed Xu Shaoshi, head of China’s Ministry of Land and Resources.
According to the ministry, the country’s reliance on foreign petroleum has reached 54.8 percent, that on iron ore 53.6 percent, that on refined aluminum 52.9 percent, that on refined copper 69 percent, and that on potash salt ore 52.4 percent.
Depending too much on overseas mineral resources will mean bigger risks, stressed Xu. With the fast growth of emerging economies and the stiffening competition for global sources, the cost will greatly go up when consuming overseas resources.
Excessive reliance will have an impact upon China’s economic security, and the country must enhance exploitation of domestic resources, pointed out Li Boqiang, a director with the China energy and economy research center of Xiamen University.
In the first two months of 2012, China’s crude oil output inched down by 1.1 percent year on year to 33.69 million tons. On the contrary, its net import of crude oil went up by 11 percent year on year to 46.31 million tons.
As a result, China’s crude oil apparent consumption climbed up by 6 percent year on year to 80 million tons. its dependence on foreign crude oil stood at 57.9 percent, marking a further increase.
The country has become a net importer of crude oil since 1993 when dependence on foreign crude oil hit 6 percent. The ratio has been upward since, and even surpassed 50 percent in 2009, hitting 51.3 percent. It will reach 60 percent in 2012, predicted industry insiders.
However, as China’s imports of crude oil rose rapidly, its imports of refined oil products shrank steeply in the first two months of this year. Its imports of refined products declined by 24.2 percent year on year to 1.11 million tons.
Last year, China accumulatively imported about 254 million tons of crude oil, climbing up by 6.05 percent from a year earlier and including 188.36 million tons imported from January to September 2011, according to China’s General Administration of Customs.
In order to better meet the domestic need and ensure economic security, China has recently accelerated the construction of strategic oil storage bases.
The first batch of four strategic oil storage bases have been completed, disclosed Zhang Guobao, head of China’s National Energy Administration (NEA). The bases, with a total storage capacity of approximately 14 million tons, have come into use in Zhenhai, Zhoushan, Huangdao, and Dalian.
Moreover, the second batch of strategic oil storage bases have been under construction, and are scheduled to be completed in 2012. They are separately located in Zhanjiang City and Huizhou City of Guangdong Province, Lanzhou City of Gansu Province, Jintan City of Jiangsu Province, Jinzhou City of Liaoning Province, Tianjin, Dushanzi and Shanshan of Xinjiang.
With the completion of these strategic oil storage bases, China is predicted to form a total oil storage capacity of 274 million barrels, or about 37.53 million tons.
China aims to complete the construction of all strategic oil storage bases in 2020. All the bases will be capable of storing roughly 500 million barrels, equal to oil imports in about 90 days and ranking the second worldwide.
(USD 1 = CNY 6.36)
China is running short of 25 kinds of mineral resources, including 11 that are crucial to the country’s economy, said a senior official on…
China Economic Net, 20:59, 22 April 2012, 347 words, (English)
The country will face a serious shortage of mineral resources by 2020 as it consumes an increasing amount of them to promote its industrialization, urbanization and agricultural modernization, Minister of Land and Resources Xu Shaoshi told