Shanghai Securities News: The SHFE’s Lead & Zinc Industry Training Held Last Week

Updated on Sep 15,2014

September 15, 2014

By Ruan Xiaoqin

The 4th Session of 2014 Non-ferrous Metal (Lead, Zinc) Industry Training was held by the Shanghai Futures Exchange (SHFE) at Henan Yuguang Gold and Lead Co., Ltd. (Yuguang) on September 11 to 12. A total of 34 futures analysts, persons from business circles, and journalists attended the training.

The current training has combined the on-site visit with theoretical research and studies. On September 10, the SHFE invited many senior experts of the Ministry of Land and Resources, the China Nonferrous Metals Industry Association, the China Battery Industry Association, the China Minmetals Corporation, and Mysteel.com to conduct an in-depth exchange on the resource state, the supply and demand, and the downstream application of lead and zinc. The report will help participating journalists to learn about the future price trend of lead and zinc. Mr. Zhou worked in a bank previously and engaged in futures operation for a while. To solid its futures skills, he worked in a futures company as a nonferrous analyst. During the research, studies, and on-site visit, he made notes carefully and asked a lot of questions. He said, “It’s a rare opportunity and I should study hard.”

At Yuguang, staff of the SHFE’s Futures Department learned about the experience and practical cases of Yuguang in futures-spot combination in recent years, as well as the most advanced manufacturing techniques and process of lead and zinc. On September 12, Yuguang led all trainees to visit the production workshop of its zinc industry and the automation control room of its lead production line.

Yuguang, established in 1957, is China’s first lead smelting plant and also China’s biggest lead smelting enterprise and biggest silver manufacturing enterprise. And it ranks the fourth among all China’s zinc smelting enterprises. Up till now, it has lead smelting of 400,000 tons, zinc smelting of 250,000 tons, copper smelting of 100,000 tons, and large numbers of precious metals, sulfuric acid, and small metal by-products.

The opening ceremony of the SHFE’s Nonferrous Metals Training Base was held on April 29, 2014. The listed nonferrous metals training bases include six enterprises, such as Jiangxi Copper Corporation, Tongling Nonferrous Metals Group Holding Co., Ltd., Zhongjin Lingnan Nonfemet Co., Ltd., Yuguang, Shenhuo Group, and Electricity Aluminum Corporation of Yankuang Group. Till now, the nonferrous metals training of the SHFE has held altogether four activities.

Liu Nengyuan, General Manager of the SHFE, praised the practical significance and positive influence of the Nonferrous Metals Training Base. He said that this program has earnestly solve the general problem of the disconnection between futures analysts and the business circle, and it will strive to become the “Huangpu Military Academy” for futures employees cross the futures and the business circle, with an aim of “making nonferrous metals employees more understand futures and futures employees more about nonferrous metals’. As a result, it targets to cultivate professionals of nonferrous metals futures and meanwhile strengthen the service efforts of the nonferrous metals industry.

Relevant person in charge of Jiangxi Copper Corporation said that the establishment of the Training Base has promoted the effective communication between real enterprises and futures companies in the futures market. While strengthening enterprises’ deeper understanding of the futures industry, it has also enhanced their utilization of futures as a risk management tool.