Although China's nonferrous metals industry has achieved positive progress, but look at the overall situation of the country, there are still some problems. Excess capacity of some products, urgent need to adjust industrial layout and industrial intensification of the low level of resources, the level of protection is not high, self-innovation capability is not strong, low levels of recycling and eliminate backward production capacity and arduous tasks. Non-ferrous metal industry in 2010 will be an important year for structural adjustment. By restructuring to enhance concentration, increase in the aluminum, China Nonferrous Metals Group, China Metallurgical, Minmetals Group and other large central enterprises capacity for sustainable development and to support the gold Lingnan (26.50, -0.40, -1.49%), non-ferrous metals in Guangxi, Yunnan Metallurgy, Hunan Nonferrous Metals Holdings, respectively, integrated non-ferrous metals enterprises within the region.

 

Affected by the gradual recovery of the global economy and ample liquidity caused by the strong inflationary expectations as well as the weakness of the dollar impact of non-ferrous metal prices in 2009 almost along the way OK. We believe that in 2010 the international and domestic economic growth rate will be further improved, making the increased demand for non-ferrous metals, the main product prices will rise in the main tone. But with the economic recovery, countries will gradually withdraw from loose monetary policy, tightening credit, reduce market liquidity, and thus downward pressure on commodities. Therefore, non-ferrous metal prices in 2010 will maintain its own run-wide shocks.

 

Affected due to the first three quarters, the main varieties of non-ferrous metals prices are generally lower than the level of the same period in 2008, so year term, non-ferrous metals industry is the decline in net profit. But the chain point of view, performance improvement quarter by quarter. Since 2010, non-ferrous metals price volatility climbed, while in 2009 over the same period prices are from the bottom of the recovery process, so the main varieties of 10-year average price of non-ferrous metals will be higher than in 2009, especially the one in the second quarter. Therefore, we believe that non-ferrous metals business in 2010 will further enhance the profitability of the first half of the rate of increase will be higher than in the second half.

 

The current valuation of non-ferrous metals industry as a whole is higher than A shares, the valuation level has been at record highs, have been part of the overdraft of future performance and growth expectations. 2010 is the restructuring of non-ferrous metal industry, an important year for merger and reorganization in the industry as a whole at a higher valuation level position, we believe that focused on investment opportunities in individual stocks have the resources and assets is expected to re-inject the theme of listed companies.