Baoshan Iron & Steel Co. Ltd (Baosteel) sold 12.47Mt of steel products and achieved a net profit of Rmb 8,051 million in the first half of 2010. Compared to the interim net profit of Rmb 669 million last year, the profit jump was mainly driven by strong demand and higher steel price in the first four months of this year.  
 
Yet given Beijing’s credit tightening policies and the adjustment of export tax rebate, domestic steel prices are under downward pressure amid expectations of weakening demand. This can be seen by Baosteel starting to lower sale prices in the September quarter. Baosteel also remains concerned about the production in the next half with the external uncertainties and the maintenance and repairs of the major production lines.  
 
 

China Shenhua Energy has released the company's interim results. The company saw production of 109.2Mt in the first half of 2010, an increase of 3.2% y-o-y. However, the production increase is predominantly from the company's subsidiary companies. The Shendong Coal Group (the main group) reported production of 74.9Mt, a 1.3% decrease than the same time last year.  
 
Production decrease of 25.4% was witnessed in Kangjiatan y-o-y, whilst numerous other mines such as Halagou, Wanli No.1 and Tanggonggou also reported production decrease.  
 
The company is expecting an increase in coal sales volume in the second half of the 2010. However, it has warned that there may be a slowdown in the growth rate in China in the second half of 2010 in comparison to the first half of the year and that coal demand may decline.  
 

Spot refining and treatment charges for imported copper concentrate paid to Chinese smelters rose to 2.2-2.5¢/lb in August, up from around $1.5-2.0¢/lb in July, largely due to improved copper prices as LME prices rebounded in August. In addition to that, a slight improvement in the globe's concentrate supply also contributed to the rise. Though China's Jiangxi Copper Company forecasts possible output cut-off which will further boost the TC/RCs later in this year, we believe it is unlikely for major Chinese producers to trim its output to lift TCs and RCs. In Jiangxi Copper's 2010 interim report, the company ran well in the first half of 2010, marking a 22% increase in output compared with the same period of prior year and the company is optimistic about fulfilling its full year goal of 90kt of copper.

Alcoa announced it has begun a US$110 million modernisation project at Cheoah Dam, USA.  
 
The modernisation project is expected to increase the efficiency of one of four hydroelectric dams that make up the Tapoco Project by another 40-50 years.  
 
This project improves Alcoa's green energy assets by increasing energy self-sufficiency, and in the long run will reduce the cost of power for Alcoa.