something to read a extract,from a ceo of a mining company
4 The Dragon Awakes•China has 1.3 billion people…20% of global population…striving for better living standards;•China currently contributes only 5% of global GDP but contributes…25% of global GDP growth…25% of global demand for commodities…50% of growth in global demand for commodities;•China’s growth has only just begun…..consumer demand, particularly for cars and real estate, will continue to fuel growth….car ownership is still only 5%. This will drive growth demand for steel (coking coal and coke), cement and energy (thermal coal);•China’s steel demand has grown at >20% pa since 2000….now c.225 Mtpa….more than twice the size of either Japan or the USA…..forecast to be >400 Mtpaby 2010…largest steel producer…largest steel consumer…largest steel importer;•Steel demand being met by new capacity in China and imports fromJapan, Korea and Taiwan…all traditional markets for Australian coking coal;•Access to imported steel-making raw materials a key strategic issue for China;•China’s demand for energy also booming….massive investment in coal fired power plantrequiring new thermal coal production capacity of 300-400 Mtpaover the next five years…..China’s ability to export thermal coal likely to remain constrained.
