China News Summary
Chinese markets recover after early falls
The Hang Seng Index in Hong Kong suffered severe drops before bouncing back on the announcement of new measures to boost liquidity of local banks, ending 2.9 percent up at 12,659.20. Bank of Communications rose 6.04 percent, Bank of China 5.94 percent and China Merchants Bank 5.03 percent.
Iron and steel producers on the Shanghai stock exchange sunk on the news of falling steel prices. China's Comprehensive Steel Price Index had dropped 24.56 percent in October, (the largest monthly decrease since 2001). Baoshan Iron & Steel ended 0.39 percent higher, after initially falling 5.2 percent on the news cut it had sales price for cold-rolled steel products for December by a further 970 yuan per ton due to sluggish steel consumption.
Iron-ore prices sink
Standard Chartered released a report saying that contract iron ore prices my decline between 15 and 20 percent next year. Cash prices for iron ore delivered to China, the world's biggest buyer, have already slumped 59 percent this half. According China Statidcial Bureau and China Customs, China produced 678.5 million tonne of iron-ore domestically and imported 376.7 million tons from January to October this year.
As new massive domestic deposit is discovered…
A proven resource of more than one billion metric tonnes of iron ore was reported for Yandian Ore Block, one of the three blocks of Jining Iron Deposit. The declining price of iron ore and deep burial of the resources (1,020 to 2,200 meters) may however scare developers away.
Geologists with Shandong Provincial Bureau of Geology and Mineral Resources claimed that the resource could be 10.8 billion tons, which would pushChina's total iron ore reserve up 10 percent. Shanghai-listed Laiwu Steel Company (600102,SH) is one of the financers of the exploration.
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