China Mining News:
In the first half of 2020, the mining sector provided coal, nonferrous metals and other energy raw materials for the resumption of work and production, making contributions to the gradual recovery of China's economy. We noticed that from January to May, profits from the mining sector decreased by more than 40% compared with the same period last year, and the rate of decline expanded. What is the reason for this? And, do you predict that the profitability of the mining sector will improve in the second half of the year?
Liu Aihua:
Thank you for your question. The profit level of coal and nonferrous metal industries decreased by a large margin from January to May. The profits of enterprises are affected by many factors such as market demand, price, and production and operation costs. The price factor, especially the international imported price, has had a greater impact on these two industries. There was a dramatic fluctuation in international energy prices in the past six months, and April in particular, with a year-on-year decrease of more than 30% in the first half of the year. Therefore, the price has had a great impact on these two industries. Right now, there are many uncertain factors influencing the international price. We need to further observe the trends for profits in the mining sector. Thank you.
