September 08, 2008

China quake closes railway and disrupts mineral shipments

Bloomberg reported that Chinese shipments of steel, copper and other commodities were disrupted after closing the main railway in central region due to earthquake. As per report, Yunnan Copper Industry Company, Panzhihua Iron & Steel Group and other companies have been affected by damage to railways and plants.

Mr Wang Yongping a spokesman of ministry of railways said that "The available capacity should be used for aid as a first priority.'' He added that rail traffic is being diverted onto other lines to bypass blockages on the main Baocheng line. Mr Wang said that at least one tunnel on the Baocheng line caved in. He added that a train hauling gasoline was trapped in the collapse, leading to a fire that has now been extinguished.

The 669 kilometer long Baocheng line runs from Chengdu to Baoji in Shaanxi province. It also connects with the major railway from Yunnan province. The line passes through more than 300 tunnels as it crosses through mountainous central China.

Three zinc smelters in the provinces of Shaanxi and Gansu provinces have also halted production on government orders. Zinc for July 2008 delivery rose by the exchange imposed 4% daily limit in Shanghai, reaching a one month high of CNY 18,920 a tonne.