To The Moon

$TSI Iron Ore - main 2410(FEFmain)$ $CapLand China T(AU8U.SI)$ $CHINA SUNSINE CHEM HLDGS LTD.(CH8.SI)$ $Jiangxi Copper Company Limited(600362)$ 📈 Iron ore prices are surging again today 30Sep24 as 🇨🇳 Chinese cities like Shanghai, Guangzhou, and Shenzhen further loosen home purchase curbs.

Fortescue Metals Group ($FMG):

Iron ore giants like Fortescue will be rubbing their hands in glee. FMG, stands to benefit directly from China’s insatiable appetite for more steel as infrastructure projects ramp up. Higher demand equals higher prices, and FMG is set to ride this iron wave all the way to the bank.

CapitaLand China Trust ($AU8U):

China’s housing market is getting a boost, and CapitaLand’s exposure to China means more construction, more steel, and thus more demand for iron ore. This surge will likely fuel their property developments across major Chinese cities, making AU8U a stock to watch as housing activity spikes.

Shougang Fushan Resources (639): 

A steel producer heavily reliant on coking coal, Shougang stands to gain from the rising steel production demand. As China cranks up the construction engine, Shougang will likely find itself in a sweet spot for increased output.

Feeling the Squeeze 📉

Jiangxi Copper Co. ($358): While iron ore producers celebrate, companies that rely on steel and iron for their operations, like Jiangxi Copper, might feel the heat. Rising raw material costs could eat into their margins, so don’t be surprised if they face short-term pressure as they battle increasing input prices.

China Sunsine Chemical ($CH8): Higher costs for iron ore mean higher costs for industrial chemicals and raw materials, potentially squeezing Sunsine’s margins. If their operational costs rise faster than they can pass on to consumers, their profits could take a hit.

🔍 The Bigger Picture 🔍

• China’s iron ore futures are up over 5%, and steel production is rebounding after a government stimulus boost. If the global economy stabilises, we could see iron ore prices remain elevated, benefiting commodities across the board.

Happy trading ahead. Cheers, BC 🍀

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