This stock at this price is still very cheap, its up base on fundamental with Metallurgical Coke price up since early this year which reflected in its earning report it should be at much higher level.
This is one of the materials used in blast furnace for steel making in addition to iron ore. In China, there are still using lot of coke in blast furnace for making steel materials. Coke is made from Coal you cannot confuse in metallurgical coal 治金煤 and metallurgical coke 治金焦ç‚. Coal need to be washed and crushing once retrieved from soil and then to be processed in heating oven in absence of oxygen to carbonize the coal into coke in order for having caking capacity when making steel. Caking capacity will different in grade 一级,二级焦ç‚. Australia normally having high grade of caking capacity.
Previously some of the washed coal was imported from North Korea in addition to Shanxi, Hebei, Shandong etc coal reserves. Since Feb 2017 if not wrong North Korea was banned from export Coal to China, and this will be extended to next year. Main import province is Shandong where Linyi Yehua is located.
Next will explain what price and demand is increasing.
Recently metallurgical coke price and demand is increasing. China did strictly in pollution control when cutting steel production capacity. Nevertheless, steel production capacity in recent times is being picked up in anticipation of major steels construction works ahead. Pollution control is to close down those small steel companies, whereby big steel company is doing the steel making and this mean this will consolidate all the steel making works in major steel companies. Huaan supplies those coke to mainly Shandong steel companies, including sister companies, if not wrong.
Price has been increased from 1,8xx - 1,9xx to now 2,2xx. This is about 10%-15% increased in price compared to latest qtr results.
Explode, CSL is dangerous and just speculated without any news/profit. It is not like Huann where got themes with profit turnaround and coke price increase. It is still up to you, but be cautious.
financial losses 183 millions ,adjusted this quarter earnings 20 millions, everybody jump in buy boss sell the shares ,fake financial report fate same as other redchip
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Tarita
1,141 posts
Posted by Tarita > 2017-09-05 09:42 | Report Abuse
is ok .. since i am buying big at 0.035-0.04.. thanks god .. im enough with 0.15 with safe money.