One of the exits for a U.S. recession is – China. In fact, Chinas continuing demand for metals for its economic growth is buffering the impact of a U.S. recession on mining producers. Chinas economy expanded last year at its strongest pace in 13 years, marking the fifth consecutive year of double-digit growth. A U.S. recession only has a minimal impact on Chinas demand for metal.

Aluminum is the third-best performing industrial metal in the world.
Aluminum price is rising because of a supply shortage. High demand growth for primary alumina in China will be a key support for prices going forward.
The supply is tight and the demand is higher than ever. China is the worlds largest aluminum producer but there is a scarcity because of snowstorms in China in 2008. On the demand side, China has become the worlds largest aluminum products maker and consumer. Chinese demand this year will be about 14.9 million tons, a 24 percent rise from 2007. The cou [Read more...]

China’s trade surplus may hit a new high of between 120 billion and 130 billion U.S. dollars in 2006, Bi Jingquan, the deputy head of the National Development and Reform Commission (NDRC) has estimated.

Bi was quoted by Monday’s China Securities Journal as saying the huge trade surplus is a direct result of the fiscal and tax policies.

China should improve its policies concerning tax rebates for exports and processing trade, Bi said at an international symposium on the reform of China’s public fiscal policy held in Beijing at the weekend.

According to figures from the General Administration of Customs, China had a record trade surplus of 101.8 billion dollars in 2005, the twelfth consecutive year in which China posted a trade surplus.

The huge trade surplus has led to increased trade disputes between China and its main trade partners and vociferous calls for the appreciation of the Chinese yuan. < [Read more...]