Five judgments of underground loader manufacturers on mining situation

Recently, experts from China Academy of Land and Resources Economics, National Information Center, China Coal Industry Association, China Nonferrous Metals Industry Association, China Association of Metallurgical and Mining Enterprises, Central University of Finance and Economics and other units analyzed and discussed the current situation of mineral resources and major issues, Trump Energy New Deal and its impact. Experts believe that although the current recovery of the mining market has achieved remarkable results, it has not been fully translated into the increase of exploration investment and mining investment, the cycle of mining adjustment has not yet ended, the development momentum is still insufficient, and the cyclical fluctuations are difficult to translate into a stable upward trend. At the same time, with the implementation of Trump's new energy policy, the global energy governance structure will undergo fundamental changes. Maintaining the rights and interests of national resources and maintaining a reasonable resource price level is a long-term and arduous task.
From the perspective of mining operation in the first quarter, experts analyzed the "good news and bad news" from five aspects of the situation of mineral resources exploration and development.
1、 Since 2012, the mining industry has entered the adjustment period again, and began to rebound in early 2016. As the current downturn in the world economy continues, and the trend of "anti globalization" and protectionism is on the rise, the mining industry has insufficient momentum for sustained growth, and may have been at the top of the rebound.
Second, although the supply of oil and gas market is basically stable, OPEC's ability to jointly freeze production has been broken by non-OPEC increments. In particular, the United States has begun to shift to fossil energy and will continue to implement the shale revolution and achieve energy independence, which means that the global energy governance structure with ecological governance as the core will undergo fundamental changes. In the future, the pricing of the international oil market may fluctuate around the cost of shale in the United States, And determine the future global oil market pattern.
Third, although the effect of coal de-capacity is obvious, the market de-capacity has not yet played its role. The coal sector has shown a trend of "three increases and three decreases" (that is, the import has increased, the price has increased, the benefit has increased, the demand has decreased, the output has decreased, and the investment has decreased), making the distorted coal market gradually move towards balance. In the next 10-15 years, the dominant position of coal in China's energy industry will not be shaken, and the role of market mechanism should be given more play.
Fourth, domestic iron ore consumption, output, import and inventory rose in the first quarter, but investment, added value and industrial benefits declined, and the foundation of industrial operation was still not solid, so the pace of import should be appropriately controlled. In particular, we should 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-industries of nonferrous metals in the country has basically ended, production has been running smoothly, demand has increased steadily, and benefits have been better than expected, but effective investment has declined. In the future, the price of major non-ferrous metal products will continue to rise with insufficient momentum, and there are still many uncertain factors in the market.