China's Coal Producers Climb

A purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics rose to 52.9 from 51.9 in August. The data are seasonally adjusted and a reading above 50 indicates an expansion.

A separate government-backed PMI is scheduled to be released on Oct. 1. The index, released by the National Bureau of Statistics and the Federation of Logistics and Purchasing, may rise to 52.5 from an August reading of 51.7, according to median forecast of 15 economists surveyed by Bloomberg News.

Signs of easing restrictions on power usage also lifted coal companies. The index of energy producers has lost 2.8 percent this month, the second-biggest decline among the 10 industry groups, as the government restricted power to steel mills and shut small power generators to meet energy usage targets.

China’s goal is to cut energy consumption per unit gross domestic product by 20 percent in the five years through 2010. Energy intensity rose 0.09 percent in the first six months compared with a year earlier.

Steel Mills

Shanxi province may lift power restrictions on some mills soon, according to Shanxi Jincheng Steel Holding Group Co., a closely held steelmaker. Some producers in the city of Wu’an in Hebei province partially resumed production after 20 days of stoppage on power restrictions, the China Securities Journal said, citing unidentified company officials.

Some steelmakers have continued production and even boosted output amid government measures to curb overcapacity, including power restrictions, the 21st Century Business Herald reported today, citing an unidentified person at the China Iron & Steel Association.

Vale SA, the world’s biggest exporter of iron ore, said demand in China hasn’t been affected by government measures to curb overcapacity in its steel industry.

Jiangxi Copper climbed 4.2 percent to 30.13 yuan. Tongling Nonferrous Metals Group Co., the second biggest, added 1.9 percent to 17.41 yuan. Jinduicheng Molybdenum Co., Asia’s largest producer of the metal used to harden steel, gained 0.3 percent to 17.52 yuan.

The London Metal Exchange Index of prices for six industrial metals advanced 0.6 percent yesterday. Copper futures in New York jumped 1.1 percent while gold futures gained 0.7 percent to a record.

Aluminum Corp. of China Ltd., also known as Chalco, rallied 7.5 percent to 11.70 yuan, extending yesterday’s 10 percent jump, after its parent announced a plan to invest at least 10 billion yuan （$1.5 billion） in rare earths.