China opening Toronto office for trading of non-ferrous metals

The China National Nonferrous Metals Import & Export Corp. (CNIEC) has been active in the purchase of Canadian metals for about nine months, but it has been conducting its business from a New York City office.

Now the corporation in setting up a Toronto branch.

Xiao Tong-ying, vice-president of CNIEC and chief executive officer of CNIEC’s American subsidiary Nonferrous Metals (U.S.A.) Inc., said her organization has transacted $40 million(US) worth of metals trade in Canada since August of last year.

(Non-ferrous metals are defined as metals or alloys which do not contain iron or in which iron is not the chief constituent, for example, copper, lead and aluminum.)

Globally in 1988, CNIEC did about $2-billion worth of metals business, she said. The corporation has 10 offices (Toronto becomes the 11th) outside China, including a second American branch in Los Angeles, one in Australia, another in West Germany and two in Hong Kong.

The offices, providing China with closer ties to outside markets, not only play a part in the buying and selling of metals, staff may also pursue purchases of equipment and technology and become involved in investment opportunities.

CNIEC, described by Xiao as an independent agency with status similar to a government ministry, was created in 1984. It controls about 300 mines in China and has seen its annual production grow by more than 10%, Xiao said.

China, Xiao said, is a net importer of metals. Mineral commodities it imports (and smelts and refines) are generally consumed inside the country. Refined metals may be sold back to the outside world should the need for foreign currency arise.

China’s smelting capacity for various non-ferrous metals is such that the country is considering placing more emphasis on custom smelting, she said.

While CNIEC’s buying and selling of metals has largely been conducted through merchants or trading houses, Xiao said her corporation is becoming more involved in negotiating with producers directly. Earlier this year, a delegation representing China’s State Gold Bureau travelled across Canada visiting a number of gold mining operations and talking with people in the mining industry and government officials.

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