China GDP budget will be annouced next Monday, it will be the highest ever, it will reflect the projection of goverment spending in 2018, which is mainly will lead to increasing of steel production for domestic use. Huaan is number one benefit of that. Many illeagle Methalurgic coke producer where shut down in China due to not been able to comply with the environmental restriction. Huaan complied with it and this is why his production rate is intact.
Huaan only sell for domestic market. He can go global if the demand grow and he can increase his production by adding 600000 to 900000 tons ( +45%) if required.
No matter how.. coke future at high level 2200++ , coke to coal ratio is 1.6 : 1 , Quite healthy level. coke demand will increase after winter because green policy end on March. Steel production will recover to max to fullfill market needs. First half of Q1 looking good , 2nd half I believe will be better. Just own opinion.
Agree with Betta68. In stock markets TA, FA & quarterly reports are merely for reference, the main trigger is always the operators/syndicates behind the backdrop. Have a look at PANSAR, it has surged from 0.465 to 0.915 (today's highest) amid DJ's turbulences (8/2-2/3/2018). Why? Fantastic quarterly reports? Not really (Although they have made a profit in every quarter, the share price has remained 0.40-0.55 for years). Having more future contracts? Probably. It has been flying, it's just because it's their turn. In stock markets, luck is more important than analytical skills.
THIS is my gut feel about this stock & I'm sticking to it :
dompeilee The stock is likely to float back down to the mid-to-high 40s in the next few weeks on absence of news between quarters and the market awaiting any sign of a possible dividend... 01/03/2018 16:46
The United States imports the most steel — 16% — from Canada. It imports 13% from Brazil, 10% from South Korea, 9% from Mexico and 9% from Russia, according to a Department of Commerce report from December 2017. Roughly 3% is imported from Germany, the only EU country to make the top 10 list of U.S. steel providers. China clocks in at number 11.
@Hustle, the stock markets over the world are more or less related, if DJ (aka the big brother in the world), reacts negatively, it sure will affect others. Even though you don't care, I don't care, but it does have an impact on all walks of life.
Nothing to worry.Dun forget Huaan made 80 million profit in 2017.Its not like China export 100 percent steel to US.Lol.Maybe 10-15 percent.Tariff is not like 50 percent but lower end double digit percent.It not like China going to have war to US.Its only trade war.Reward more than losses by many times.No comment.I support what Betta say.In the previous(Tuesday) I mention of 10 percent or over if really bad news.So.Wht to scare.
All market is down, localy, regionaly and globaly, it has nothing to do with Huaan fundamental. Bursa opperators are taking advantage of the situation.
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....
Betta68
2,300 posts
Posted by Betta68 > 2018-03-02 14:51 | Report Abuse
Got some bullet over, lol..