JP Morgan Chase: coal iron ore imports of oil hit a record high in March
Yesterday, JP Morgan the current report presentations that China’s coal deals in March over the matching interval an advance of 36.2% to 5.72 million tons, banging a record high coal deals than deals in February advanced 17.2 percent. At the matching time, the goods produced of steel ore for hard metal deals in March arrived at a record 52.1 million tons, presenting an advance in actual property area start-led recovery in hard metal demand.
5-fold increase in coal imports
The report showed China’s net imports of coal during the first quarter reached 6.22 million tons, representing a year-on-year increase of nearly 5 times. Analysts pointed out that the sharp increase in coal imports due to China’s major independent power producers to Vietnam, Indonesia, Russia and Australia to increase the procurement of suppliers. When the coal supplier and the large-scale independent power producers for price negotiations between the first four months of stalemate, the Chinese power companies through the use of low international prices, was able to deduct the tax rates and lower cost. Also affected by increased imports to improve the promotion of domestic demand, China’s electricity consumption in March fell 2.01 percent decline in February than 1 has been narrowed to 5.2%.
However, China’s largest coal port in Qinhuangdao coal stocks have been the end of March from 4.9 million tons at the time fell to 3.5 million tons, reflecting the recent decline.
Imports of iron ore record
The report furthermore displays that China’s metal ore trades in March come to a record 52.1 million tons, in outlook of the latest flaw in the household iron alloy charges, which are oddly high grade of trade data. First quarter of this year, China imported 132 million tons of metal ore, and the year 2008 only 444 million tons of imports.
According to the Chinese consulting firm Mysteel analysis of the import record by the beginning of this year in order to promote small-scale steel mills. According to the latest data show that the first quarter of the domestic real estate construction in the area rose 12.7 percent year-on-year, driven steel consumption rose over the same period. However, the new work is still negative growth in the same period last year, showing growth in the construction area and re-start of the existing projects. Housing sales continue to pick up will reduce the current inventory at a higher level and to encourage developers to start new projects in the second half.
Central oil deals which was an advance of 33%
By the decline in freight rates and import prices, the Government has an active reserve of oil, copper, as well as limited domestic supply of other commodities. By the Government to increase the strategic oil reserves and demand, China’s crude oil imports in March hit a new 12-month high of 16.34 million tons, an 33 percent raise in February.
JP Morgan Chase is expected that China’s oil demand in the future as a strong rebound in economic growth. Although demand for passenger cars only China National Petroleum (601,857, stock it) a small proportion of consumption, but strong growth in sales of motor vehicles on the demand for oil is a good news. The report stressed that the Chinese manufacturers and the National Stock Reserve added reserves to the global impact of copper in China in March has not been processed and semi-processed copper imports reached 374,957 tons (up from a record created in February to raise 14%), the Copper hit a new high of 6 months.
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