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Have Commodities Stocks Peaked?

China Hungry for Commodities

Oct 19, 2007
Posted by fmdm in US Traded Stocks.
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We always read about China's appetite for commodities and the fact
that the Chinese are largely responsible for the increase in demand
but we had only seen figures relating to wheat and other farming
products.


We recently came across some numbers that we though might be
interesting for you in terms of China's weight in the increase in
demand:


Steel: 65%
Aluminum: 57%
Copper: 93%
Zinc: 93%
Nickel: 71%
One interesting company to look at for this increase in base metal
demand and therefore consumption is Companhia Vale (RIO). They are a
diversified metals and mining company. The Company is a producer and
exporter of iron ore and pellets and a producer of nickel. It also
produces copper, manganese, ferroalloys, bauxite, precious metals,
cobalt, kaolin, potash and other products. The Company is actively
engaged in mineral exploration efforts in 19 countries worldwide. It
operates logistics systems in Brazil, including railroads, maritime
terminals and ports that are integrated with its mining operations.
Directly and through affiliates and joint ventures, the Company has
investments in the aluminum, coal, energy and steel businesses.


Despite having had a lot of attention recently, valuation is still
reasonable and it is ideally placed to take advantage of this demand
and future industry consolidation.


ei-forum.com/2007/12/1......