China releases first monthly nonferrous metals index

China released its first monthly nonferrous metals climate index on Wednesday against a background of weak demand, falling prices and industrial losses, in an attempt to have a bigger say on commodity prices in the international market.

The index is jointly published by the China Nonferrous Metals Industry Association, the National Bureau of Statistics and Economic Daily.

Chen Quanxun, chairman of the China Nonferrous Metals Industry Association, said the new index will help in the decision-making of the government, companies and investors, and can also provide a full picture of the industry's development and give advance warnings for related enterprises.

He said China's nonferrous metals industry is facing challenges of falling prices and overcapacity, leading to financial losses for companies.

Jia Mingxing, vice-chairman of the association, said 2,339 companies in the industry reported deficits for the first two months of this year, accounting for 26.9 percent of all companies in the industry.

The losses from those companies totaled 9.26 billion yuan ($1.49 billion), Jia said.

Profits for the entire industry for the first two months declined 9.3 percent year-on-year to 15.54 billion.

Chen said a seasonal climate index for China's nonferrous metals industry has been published for five years and the association decided to publish a monthly index to better reflect industrial and international economic changes.

To better help the sustainable development of the industry, the association plans to also publish a climate index for specific metals, such as copper and aluminum.

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