August 28, 2008

Production halted in Hunan Valin Steel Tube & Wire Co

It is reported that Hunan Valin Steel Tube & Wire Corporation has halted production at a copper processing unit because of lower fees.

Valin Steel said in a statement to the Shenzhen Stock Exchange that Hunan Valin Guangyuan Copper Tube Co, in which it holds an 83% stake, is unlikely to resume output in the near future.

A global shortage of copper ore has enabled miners including BHP Billiton Limited to cut fees for processing the raw material into metal in Asia by 37% this year. Fees will decline further in 2008 after Tongling Non ferrous Metal Co agreed to more cuts with BHP this month.