The global mining industry bottomed out and the trend is getting steady. Mining spring is here!

According to a research report by the Mineral Resources Situation Analysis Group of the China Institute of Land and Resources Economics, in general, both developed and developing economies have used mining as the main driving force for economic development. This is rare in recent years. The phenomenon. Zhang Hongtao, the State Council’s Counselor and former chief engineer of the Ministry of Land and Resources, believes that with the recovery of global emerging economies, the recovery of manufacturing and trade, increased market confidence, and stabilization of commodity prices, exports of commodities in emerging markets have resumed growth. "In the next 20 years, the demand for resources in the global economic development will not change, the fundamentals of resource shortage will not change, and the global development trend will not end. In addition, the new driving force for China's economic development has not been fully released. In the future, global energy demand will Continue to maintain a strong momentum, of which China's energy demand accounted for more than half." Zhang Hongtao said. However, in primary energy consumption, oil is still the dominant fuel, accounting for one-third of the total. After falling for 15 consecutive years (1999-2014) in 2016, the oil market share increased for the second consecutive year, while the share of coal Dropped to 28.1%. “Although China’s dominant minerals are prominent, the identified resource reserves of rare earth, tungsten, tin, molybdenum, niobium, vanadium, titanium, niobium, magnesite, fluorite, graphite, barite, bentonite, talc, thenardite The world's first, in which rare earth reserves account for 80% of the world, antimony ore accounts for 40%, titanium ore reserves are the sum of reserves in other countries, tungsten reserves are four times the sum of reserves in other countries, but the situation of large mineral shortages is still difficult to change Zhang Hongtao said that resource demand will remain high for a long time. From the perspective of global economic development, the proportion of mining in economic growth is on the rise. This trend is being confirmed in other countries around the world. After taking office, US President Trump fulfilled his campaign promise and introduced various policies to support mining development. In March of this year, Trump signed an executive order for "energy independence." In July, Trump announced the cancellation of the policy imposed during the Obama administration to provide financing for overseas coal-fired power plants. In addition, in the lease of federal land, the Obama administration’s ban on coal leased federal land was lifted. This series of policies has led to a sharp rebound in US coal production and exports. In order to promote the development of the mining industry in the country, Brazil has carried out drastic reforms to the mining management system. On the one hand, the Mineral Development Bureau was transformed into the National Minerals Bureau responsible for mining supervision, with the aim of increasing transparency and reducing bureaucracy. On the other hand, increase the mining rights, change the tax base from net sales to total sales revenue, and implement a floating tax rate according to price changes. Taking iron ore as an example, if the iron ore price is lower than 60 US dollars / ton, the royalty rate is 2%; the price is 60 US dollars / ton ~ 70 US dollars / ton, the tax rate is 2.5%; the price is 70 US dollars / ton ~ US$80/ton, the tax rate is 3%; the price is between US$80/ton and US$100/ton, and the tax rate is 3.5%; if it is higher than US$100/ton, it is 4%. In addition, Brazil levies an annual tax on mining activities. According to the size of the company and the stage of the project, the mining company pays a tax of R$500-5,000 per year. There are still many other countries and regions that decide to increase taxes and raise tax rates. For example, Western Australia raised the gold mining rights tax rate from 2.5% to 3.75%, the Democratic Republic of Congo resumed the import value-added tax of mining companies, Tanzania imposed a mineral export inspection tax, India imposed a gold sales tax, and the United States intends to increase the coal royalties tax rate. Wait. In other countries, national mining companies have been brewing or established to strengthen national control over mining and improve competitiveness. In February, Bolivia established the National Lithium Mine Company. In April, the Chilean National Copper Company established a lithium mine branch. In June, Ecuador approved the establishment of a national mining company. In order to strengthen the top-level design and management of mineral resources, some countries have established specialized agencies. For example, in March, Colombia established the National Water Commission; in April, Argentina established the Federal Energy Commission. There are indications that mining is gaining traction in major mining producing countries around the world, both in terms of industry positioning and management design. The global mining industry bottoms out and the situation is getting better. "China's economy is generally improving. The support of new business and new models to China's economy is increasing. Private investment is low, corporate financing is difficult, industrial structure is irrational, resource demand is weak, and geological exploration efficiency is declining. If the challenge is still deeply integrated into the global economy, China must face up to the instability and uncertainty brought about by the international situation.” Zhang Hongtao predicted that global energy and mineral demand is expected to grow, and important metal mineral prices will rise. Most of the “three rare” minerals have a shortage of supply, the prices of international mineral products have risen in an all-round way, and the export of national mineral products of important mineral resources has rebounded sharply. Zhang Hongtao said that innovation drive has become a new impetus for the resource industry in the new era, and environmental protection has become an important indicator of China's energy structure adjustment. Green sustainable development has become a global consensus. Renewable and clean alternative energy sources such as water, wind, photovoltaic, nuclear power, shale gas, combustible ice and geothermal will maintain medium and high growth. Zhou Ping, a researcher at the Development Research Center of the China Geological Survey, said that the global economy has fully recovered and the economic prospects of the US, Europe, Japan, China and other emerging markets have improved. In 2017, the “synchronous growth” of the global economic recovery in various economies has not occurred in the past decade. “Affected by the above factors, the global mining index has generally gone out of the doldrums and entered a stage of slow recovery. The initial and intermediate-level company financing and initial resource discovery have all shown a wave of rising.” Zhou Ping said that in 2017, global solid mineral exploration investment bottomed out. The solid mineral exploration budget has risen for the first time since 2012, up 14% from 2016 to reach $7.95 billion. “Geological exploration investment fluctuations can best reflect the mining cycle of mining and can be used as a barometer of mining.” Yang Bing, former director of the Nonferrous Metals Minerals Geological Survey Center, said that during the period from 1991 to 2017, the mining industry experienced two cyclical fluctuations. One was from 1993 to 2002, and the other was from 2003 to 2016. “According to the cycle theory, the mining recession should bottom out in 2016 and begin to rebound and recover in 2017.” Yang Bing said that at the China International Mining Conference held in September 2017, most of the leading experts at the conference recognized this: 2017 It will be the starting point for a new cycle in the mining industry. The data shows that from September 2016 to September 2017, the prices of mineral products have risen to varying degrees. The prices of copper, lead, zinc, aluminum, lithium and cobalt increased by 35%, 27.4%, 38%, 36%, 75% and 118% respectively. China's mining industry profits have increased significantly. At the same time, global mining financing mergers and acquisitions are also becoming more active. According to Ernst & Young statistics, the amount of financing in the second quarter of 2017 was US$71 billion, up 15% year-on-year. The number of mergers in the first half of the year exceeded that of 2016. The amount of mergers and acquisitions was US$28 billion, up 92% from US$14.6 billion in the same period of last year. The case grew by 3.3% to 222.

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