Great Wall Motor has accused BYD Auto of violating evaporative pollutant emission standards with its Qin Plus DM-i and Song Plus DM-i vehicles, which use atmospheric fuel tanks. Great Wall Motor submitted a report to China’s Ministry of Ecology and Environment, the State Administration for Market Regulation and the Ministry of Industry and Information Technology on 11 April 2023. BYD responded with a statement saying it “firmly opposes any form of unfair competition” and that its products meet national standards and have passed certification from national authorities. BYD’s stock price fell more than 2% following Great Wall Motor’s announcement, while Great Wall Motor’s stock fell more than 6% after BYD’s statement.
As seen on a recent report from SMM, Great Wall Motor submitted a report to the Ministry of Ecology and Environment, the State Administration for Market Regulation, and the Ministry of Industry and Information Technology on April 11, 2023, claiming that BYD Qin PLUS DM-i and Song PLUS DM-i vehicles using atmospheric fuel tanks may have violated the evaporative pollutant emission standards.
Following the news, BYD issued a statement stating that they “firmly oppose any form of unfair competition and reserve the right to legal proceedings.” They also claimed that their products and related tests meet national standards and have passed certification from national authorities. However, the news still had a significant impact on BYD’s stock price, which fell by more than 2% in the afternoon.
Great Wall Motor, on the other hand, saw an even more significant impact on their stock price, plunging more than 6% at the opening after BYD’s response was released. As of the closing, the company had fallen 6.17% to 24.8 yuan per share.
This news comes amidst a wider range of developments in the metals and mining industry. For example, ‘Bond King’ Jeffrey Gundlach recently predicted that sharp Fed rate cuts by year-end will push up gold prices, while Rio Tinto warns of risks for paying high premiums for lithium mines after plunging lithium prices triggered an acquisition rush.
Goldman Sachs has also lowered its price forecast for aluminium and copper in 2023, and sees nickel prices plunging. Zinc prices are also expected to plunge by 2025, As seen on recent reports. Meanwhile, the World Bank predicts that global commodity prices will plunge precipitously this year at the fastest speed since the Covid outbreak.
In other news, the G7 has announced plans to expand sanctions covering metals on Russia, while Citigroup warns that European commercial real estate values will plummet 40%, but sees a medium-term opportunity. The IMF also warns that US debt defaults will take a heavy toll on the global economy, with global GDP growth potentially plunging.
Goldman Sachs has also warned of serious risks if the US dollar loses reserve currency status on the debt ceiling standoff. BofA has sharply lowered its forecast for oil price and global oil consumption in 2023, while UBS sees China GDP growth forecast rising and earnings from China stock market soaring, with RMB appreciating.
Finally, global aluminium inventory is expected to plunge further amid supply headwinds, and LME aluminium prices are expected to react fast. These developments are just a few examples of the many significant changes that are currently taking place across the metals and mining industry.
In short, the news that BYD Qin PLUS DM-i and Song PLUS DM-i vehicles using atmospheric fuel tanks may have violated evaporative pollutant emission standards has had a significant impact on both BYD and Great Wall Motor’s stock prices. However, this news is just one of many significant developments that are currently taking place across the metals and mining industry, highlighting the constantly changing nature of this sector and the need for businesses to remain vigilant and adaptable.
Photo Credit: opengraph.githubassets.com
