While the UMC MFs printed pages upon pages in the sell-out glossy highlighting the risks like falling IO prices and lack of rail access (when 3rd party access ruling is pending and possibility of infrastructure JV by CRM/FMG/AGO/NWIOA....here is the BHP game plan highlighting the limitless potential of China and impact on commoditiy prices.
"....Forecasts for China's economic growth are inevitably dizzying but McKinsey, the consultancy, recently laid out its guess at what it could mean in terms of population shifts and construction. By 2025, it forecast, 221 Chinese cities will have more than 1 million people living in them, which compares with 35 in Europe today; 170 mass-transport systems could be built; 5 billion square metres of road could be paved; and 50,000 skyscrapers could be built.
Such forecasts may sound fantastical but BHP and fellow miners have discovered in the past six months how quickly Chinese construction can recover after a global downturn. The crash in commodity prices, which was meant to turn boom into bust for the big miners, was brief - a spectacular recovery in prices and demand has followed....."
UMC Price at posting:
$1.29 Sentiment: Buy Disclosure: Held
