Five judgments of underground loader manufacturers on the mining situation

A few days ago, experts from China Academy of Land and Resources Economics, National Information Center, China Coal Industry Association, China Nonferrous Metals Industry Association, China Metallurgical and Mining Enterprises Association, Central University of Finance and Economics, etc. The General Energy New Deal and its impact were analyzed and discussed. Experts believe that although the current recovery of the mining market has achieved obvious results, it has not been fully translated into an increase in exploration investment and mining investment. The mining adjustment cycle has not yet ended, development momentum is still insufficient, and periodic fluctuations are difficult to translate into a steady upward momentum. At the same time, with the implementation of Trump's New Energy Deal, the global energy governance structure will undergo fundamental changes. It is a long-term and arduous task to maintain national resource rights and interests and maintain reasonable resource prices.

From the perspective of mining operations in the first quarter, experts analyzed the "good news and bad news" in five aspects of the prospecting and development situation of mineral resources.

1. Starting in 2012, the mining industry has once again entered an adjustment period, and began to rebound in early 2016. As the current world economic downturn continues, and the trend of “anti-globalization” and protectionism is on the rise, the mining industry has insufficient momentum for continued growth, and it may already be at the top of the rebounding market.

Second, although the supply in the oil and gas market is basically stable, OPEC’s capacity for joint frozen production has been broken by non-OPEC increments. In particular, the United States has begun to switch to fossil energy and will continue to implement the shale revolution and achieve energy independence. This means that ecological governance is The core global energy governance structure will undergo fundamental changes. In the future, the international oil market pricing may fluctuate around the cost of shale in the United States and determine the future global oil market structure.

Third, although the effect of coal capacity reduction is obvious, the market capacity reduction effect has not yet been brought into play. The coal sector presents a "three rises and three drops" trend (that is, rising imports, rising prices, rising benefits, falling demand, falling output, and falling investment). The distorted coal market is gradually moving towards equilibrium. In the next 10-15 years, coal's dominant position in my country's energy industry will not be shaken, and more market mechanisms should be used.

Fourth, in the first quarter, domestic iron ore consumption, output, imports, and inventories rose across the board, but investment, added value, and industry benefits declined, and the foundation for industry operations was still not solid. The pace of imports should be moderately controlled. In particular, it is necessary to promote information transparency and reduce the phenomenon of highly monopolized resources, highly financialized markets, and highly fragile supply chains.

Fifth, the differentiation of various sub-sectors of non-ferrous metals across the country has basically ended, production has been running smoothly, demand has grown steadily, and benefits have been better than expected, but effective investment has declined. In the future, the momentum for continued price increases of major non-ferrous metal products will still be insufficient, and there will still be many market uncertainties.