November 09, 2009
– Comments (3) |
RELATED TICKERS: YZC
to make car sales rise over 70% in October. Look at Chinese coal stocks first then overseas coal stocks.
I don't invest in Chinese stocks, but I do remember reading somewhere that the reason that China imports so much coal is because the quality of theirs is generally inferior, and based on the amount needed to produce steel, it was cheaper for them to buy foreign and pay shipping.
Don't know if this is true or not, but just thought I would mention it.
Have a nice day.
Yes thats true to a certain point but thats why Chinese coal company YZC went out and bought an Austrailian Coal company just recently approved.
Australia Approves Yanzhou Bid for Felix at The Wall Street Journal Online (Mon, Oct 26)
● We estimate the highly probably Felix acquisition and the potential resolution of the Yushuwan mine, will boost Yanzhou’s output by 22% for 2010E, 50% in the long run, and increase Yanzhou’s coal reserve by 40%, from the current level, on attributable basis. While we believe the acquisition price of Felix is better-valued on long term than short term, the potential acquisition of Felix would add 14% earnings to Yanzhou for 2010E, and 37% for 2011E. ● We expect a better balanced coal market for 4Q09 and 2010E, and moderate upside for coal prices (CS NEWC coal price at US$75/t for 2009E and US$80/t for 2010E). We believe the cyclical driver of the power demand, output of basic materials, is stabilised, and improving real demand improvement from other part of the economy will make power demand, and therefore coal prices outlook, become defensive again, with potential upsides.