why gorrillas are buying

BHP's Carbon Steel Materials division has said that China is running down it's stocks in an attempt to keep the price down.
They however will have to restock, demand for steel materials will increase and this will push prices up.

Apparently analysts (gorillas) "share" this view as this quote from Macquarie indicates

"The division reinforced the analyst’s views of a strong outlook fort iron ore, coking coal and manganese markets at an analysts’ meeting with management yesterday"

Read the full article -

BHP’s Carbon Steel Materials to achieve solid growth in FY07: Macquarie
29/11/2005

BHP Billiton’s Carbon Steel Materials, the most profitable division of the mining giant, is poised to register solid earnings growth in the 2007 fiscal year, according to Macquarie Research Equities (MRE).

BHP’s Carbon Steel Materials to achieve solid growth in FY07: Macquarie
29/11/2005

BHP Billiton’s Carbon Steel Materials, the most profitable division of the mining giant, is poised to register solid earnings growth in the 2007 fiscal year, according to Macquarie Research Equities (MRE).

The division reinforced the analyst’s views of a strong outlook fort iron ore, coking coal and manganese markets at an analysts’ meeting with management yesterday.

Carbon Steel Materials is expected to generate as much as 50 per cent of BHP’s earnings in fiscal 2006.

“BHB continues to trade on undemanding multiples and at a modest premium to valuation,” said MRE.

MRE has maintained its Outperform recommendation on BHP and retained its 12-month price target of AUD$23.62."

Carbon Steel Materials is expected to generate as much as 50 per cent of BHP’s earnings in fiscal 2006.

“BHB continues to trade on undemanding multiples and at a modest premium to valuation,” said MRE.

MRE has maintained its Outperform recommendation on BHP and retained its 12-month price target of AUD$23.62."

Thanx Waxymaize (great name)