China stimulus part 3 what`s in for SGQCHINA STIMULUS 3 - HOW SGQ WILL BENEFIT
3 part series
Part 1 = CHINA STIMULUS 1 -WORLWIDE MARKET MOVER
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=31503153&l=0&r=0&s=SGQ&t=LIST
Part 2 = CHINA STIMULUS 2 = 20 MORE YEARS OF CHINA STORY
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=31503230&l=0&r=0&s=SGQ&t=LIST
Part 3 = CHINA STIMULUS 3= WHAT'S IN IT FOR SGQ ?
INFRASTRUCTURE STIMULUS = -LOTSA STEEL -
Beijing announced plans to build
13 highway projects ,
25 rail projects
and other municipal and port projects,
Nomura economists said the value of the projects approved this week totaled 1 trillion yuan,
or about 2.1% of the size of the Chinese economy last year.
Add to that announcement that 18 cities in China would be receiving subway systems
THAT's 2 TIMES BIGGER DIG THAN US AND CANADA DIGS IN LAST 200 y COMBINED
GEEEESUS
The new efforts mark a second package, according to Merrill.
Infrastructure works — including airport and energy-related plans
unveiled from mid-May to early July,can be counted as first
HSBC said that the investments, will boost
infrastructure investment growth to 20% annualized in the coming months,
SO, AT LEAST 10% STEEL, iron ore and met coal GROWTH IS
ASSURED = restored the + 10% aver growth in last years
Now we know why steel SOEs were ordered not to curtail steel prod
and ACCUMULATE LOTSA INVENTORIES OF INPUT ( met coal and ore AT ROCK BOTTOM PRICE
They fooled coal and IO markets/ prices to submission LOOL
Didn't announce stimulus untill all their storage and ports got filled up witch cheap coal and IO
They are getting smarter and smarter in manipulating commodity speculators LOOOL
Feeling stupid/ used ... aren't we
They will still try to avoid surge in commodity prices for next few months ,
by smart use of that inventory - to prevent too rapid coal ., IO impors growth
This slide from Nomura highlights every project approved by the National Development and Reform Commission:
https://static6.businessinsider.com/image/504a0033ecad042d66000001-900-1075/chinese-stimulus-plans-chart.jpg
Of particular interest to SGQ is
-- power plant in Inner Mongolia
--Inner Mongolia subway
--power plant in Ninxia
--power plant Xinjang
--Xinjiang airport
-- --Xinjiang wind farm
--Gansu airport
- Gansu sevage treatment
--Lanzhou -subway
-- Taiyuan subway
--Shaanxi sevage treatment
Abowe are in 6 provinces of direct SGQ marketing area
iN ADDITION TO selling 1/3 to 1/2 prod through coal traders who ship all over the place incl Japan ,Korea
Inner Mong https://en.wikipedia.org/wiki/Inner_mongolia
Gansu https://en.wikipedia.org/wiki/Gansu
Xinjang https://en.wikipedia.org/wiki/Xinjang
Ningxia https://en.wikipedia.org/wiki/Ningxia
Quinghai https://en.wikipedia.org/wiki/Qinghai_Province
Northern Shaanxi https://en.wikipedia.org/wiki/Shaanxi_Province