BEIJING (Commodity Online):The base metals industry in recent times have always looked at Chinese buying data and aggressive piling of stocks by State Reserves Bureau was perhaps was the major factor influencing prices of copper.

Now the news of Aluminum Corporation of China (Chinalco) and Bank of Beijing entering into a strategic co-operation agreement whereby the former will get an indicate credit facility of RMB30 Bn might appear to be a trigger for revival of confidence in this sector. The agreement was signed in the presence of representatives of Chinalco and Bank of Beiing by Chairmen of both organizations on July 1, 2009.
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Under the terms of this agreement, Bank of Beijing will provide an indicative credit facility of RMB30 billion to fully support the company to achieve its strategic goals of becoming a global diversified resources company, to integrate domestic resources
and to advance its global business development.


Chinalco is the largest non-ferrous metals company in China, the second largest alumina producer and the third largest aluminum manufacturer in the world, and has the largest and best-equipped aluminum processing facilities in Asia.

In recent years, Chinalco has formed a multi-pronged development strategy where the company expanded into aluminum-based light metal, copper-based heavy metal and other non-ferrous metal with the goal of becoming a leading diversified international resources company. As of 2008, Chinalco generated revenue of over RMB130bn, with total assets of RMB360bn. It also became a Fortune Global 500 company with its overall strength top ranked in the global non-ferrous metals industry.

Meanwhile, the base metals ended mixed yesterday, with copper and nickel registering gains, while the rest of the complex settling lower. Copper was categorically supported by reports of a 6.0 magnitude quake hitting southern Peru. In this respect, Peru is one the major producers of copper, contributing significantly to the global refined copper production. However, market participants continued to remain risk averse, provided the seasonal summer lull period in the base metals market, according to an analysis by Angel Commodities.

China imported 476,000 tons of unwrought copper and semi-finished products in June as compared with, 422,000-tons in May. Copper Imports have hit an all-time record for a fifth straight month, the brokerage said.

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