d j carmichael research report, page-56

Quanta.....thanks,but the story is only beginning.What we really need is improved sentiment to the thermal coal market and then we will really see some action.AFR,CCC,HDG and others are all out of favour at the moment,so the comparison of NMR to these will even be greater as sentiment returns.

But with this news,things may be about to change:-

Stockbrokerage UBS said in a recent note that thermal coal prices had slipped 7% to 9% since September, despite the fact that pre-northern winter restocking normally commenced about now. A lack of credit and adequate inventories in Europe and China were perhaps the reasons for this, it said.

It added the price weakness was "fleeting", however. Demand risk when rains hit coal supplier Australia would serve as a buffer for further weakness while the price of gas, which is a substitute fuel for coal, was increasing.

"Given that thermal coal’s price movements are buffered, that we’re at the start of pre-winter restocking, and that the coal-burning economies of China and India will remain heavily dependent on imports for marginal tonnes, we see any related price weakness for thermal coal as a further buying opportunity," UBS said.

This view was echoed by Barclays Capital. In a note dated November 23, the bank's research unit said the thermal coal was still relatively high on a long-term basis and that China demand would provide it with fresh impetus. The short-fall in Chinese power demand was 40GigaWatts for this winter and spring against expectations of a shortfall of 26GW, it said.




My thanks to Mihal for this news...see post Post #: 7609753