Photo taken on April 27, 2013 shows an office building whose facade is decorated with Periodic Table of Elements in Shenyang, capital of northeast China's Liaoning Province. The office building belongs to a nonferrous metal company. (Xinhua/Yao Jianfeng)
BEIJING, July 5 (Xinhua) -- Nonferrous metals companies listed on China's A-share market achieved outstanding performances in the first half of the year, with the recovery of the global economy and high commodity prices, the Shanghai Securities News reported on Monday.
Among the companies unveiled their performance forecasts for the first half, some even saw their results in the period exceed those in the full year of 2020.
Zijin Mining (601899.SH) has recently announced that its net profit in the first half of the year is expected to be in a range from 6.2 billion yuan to 6.6 billion yuan, a significant increase of 156.09 percent to 172.61 percent year-on-year. Its net profit in 2020 stood at 6.5 billion yuan.
The Shanghai-listed company attributed its profit growth to the significant increase in global capital liquidity, the impact of the epidemic, and the continued rise in the prices of major metal mineral products.
Tongling Nonferrous Metals Group (000630.SZ) expected its net profit for the first half of 2021 to be 1.25 billion yuan, a year-on-year increase of 232.73 percent, while its net profit was 866 million yuan last year.
In addition to the copper producers, companies engaged in production and sales of other metals are also bullish about their performances in the first half.
For example, Tianshan Aluminum (002532.SZ) estimated that its net profit in the first half of the year is expected to be 1.96 billion yuan, a year-on-year increase of 200 percent.
The Shenzhen-listed company noted that in the first half of 2021, the aluminum industry maintained a high level of prosperity and the demand for aluminum ingots was strong. During the period, the prices of aluminum ingots rose sharply by about 31 percent.
Thanks to the increase in molybdenum prices, Jinduicheng Molybdenum Co., Ltd. (601958.SH) is expected to have a net profit of 225 million yuan to 255 million yuan in the first half of this year, a year-on-year increase of 78 percent to 101 percent.
Since the beginning of 2021, due to the economic recovery and still loose liquidity, the prices of industrial metals have risen sharply. In particular, the prices of copper and aluminum have hit new highs in the past decade. With rising prices and recovering demand, the profitability of the non-ferrous industry has improved significantly, according to Chen Jianwen, an analyst at Ping An Securities.
Chen pointed out that liquidity expectations in the second half of the year may affect the prices of copper and aluminum. Given the mismatch of supply and demand and lower inventories, the prices of copper and aluminum are expected to remain at a relatively high level. (Edited by Hu Pingchao with Xinhua Silk Road, hupingchao@xinhua.org)
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