There is an awful lot of rubbish around on iron ore and coal today. I would normally round it up for you and give you the truth of it but today I’m blessed to not have to. Nikko Asset Management has a note that it is virtually my view word for word. Here it is:
Having travelled to China many times over the past 15 years, the pace of change still continues to intrigue and amaze me. In contrast, the pollution and typical smell, that of burning coal, as I arrive into Beijing on a Sunday night does not!
The intention of this flying four day trip was to get a better understanding of iron ore and coal pricing issues. On the first day I was greeted with a rare event – a beautiful blue sky day in Beijing. This was followed up the next day by another clear blue sky when travelling into the industry heavy Hebei district. This was even more incredible given pollution was at such extreme levels there recently that schools were closed as the Air Quality Index reached levels of 220, versus acceptable levels of 25.
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