Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Commodity price changes
The best way to play Asia
Underlying volumes remain strong – focus on the upstream
While both the Commodity and Equity markets have been difficult to predict, we
remain comfortable with our growth forecasts for volumes in China and as a
result we also feel comfortable about our Commodity price forecasts.
After the most recent round of pricing changes, we remain positive on the
upstream asset commodities like Copper, Iron Ore, Coking Coal and Thermal
Coal. We are more cautious on Zinc, Steel and Aluminium while we remain
relatively neutral on the Gold sector.
Copper and Iron Ore the stand-out commodities for us
We have long been positive on both Copper and Iron Ore and this remains the
case. In the shorter term, we are very positive on the Copper price because we
think Chinese buying will start to increase given that demand remains strong and
that inventory levels have fallen to more reasonable levels. When it comes to
the iron ore market, we also remain positive in the medium-to-longer-term but we
do see some short-term weakness. Project delays and the high cost curve in
China and India will continue to be supportive of prices but some seasonality in
steel production in China might cause some short-term demand weakness.
Key stocks to focus on around the region
Given we are more positive on underlying demand in Asia over the next few
months, we think investors should start to take on more risk in their portfolios.
Given our stance, our key picks reflect this, particularly in the steel and base
metals segment of the regional market.
Coal – Thermal remains our key area of interest: Shenhua in China; and Harum,
Straits Asia and PTBA in the ASEAN segment of the market.
Base Metals – Copper remains our preferred area of exposure. Jiangxi Copper,
Sumitomo Metal Mining, Oz Minerals and PanAust are the key plays. In the Zinc
segment of the market, we still find Sterlite in India attractive, and Korea Zinc.
Steel – The sector remains challenging and we expect to see some short-term
weakness in prices. We would look at Hyundai in Korea, JSW in India and, for a
super leverage story, Maanshan in China.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Commodity price changes
The best way to play Asia
Underlying volumes remain strong – focus on the upstream
While both the Commodity and Equity markets have been difficult to predict, we
remain comfortable with our growth forecasts for volumes in China and as a
result we also feel comfortable about our Commodity price forecasts.
After the most recent round of pricing changes, we remain positive on the
upstream asset commodities like Copper, Iron Ore, Coking Coal and Thermal
Coal. We are more cautious on Zinc, Steel and Aluminium while we remain
relatively neutral on the Gold sector.
Copper and Iron Ore the stand-out commodities for us
We have long been positive on both Copper and Iron Ore and this remains the
case. In the shorter term, we are very positive on the Copper price because we
think Chinese buying will start to increase given that demand remains strong and
that inventory levels have fallen to more reasonable levels. When it comes to
the iron ore market, we also remain positive in the medium-to-longer-term but we
do see some short-term weakness. Project delays and the high cost curve in
China and India will continue to be supportive of prices but some seasonality in
steel production in China might cause some short-term demand weakness.
Key stocks to focus on around the region
Given we are more positive on underlying demand in Asia over the next few
months, we think investors should start to take on more risk in their portfolios.
Given our stance, our key picks reflect this, particularly in the steel and base
metals segment of the regional market.
Coal – Thermal remains our key area of interest: Shenhua in China; and Harum,
Straits Asia and PTBA in the ASEAN segment of the market.
Base Metals – Copper remains our preferred area of exposure. Jiangxi Copper,
Sumitomo Metal Mining, Oz Minerals and PanAust are the key plays. In the Zinc
segment of the market, we still find Sterlite in India attractive, and Korea Zinc.
Steel – The sector remains challenging and we expect to see some short-term
weakness in prices. We would look at Hyundai in Korea, JSW in India and, for a
super leverage story, Maanshan in China.
No comments:
Post a Comment