• 4 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 10 minutes IT IS FINISHED. OPEC Victorious
  • 16 minutes GOODBYE FOREIGN OIL DEPENDENCE!!
  • 3 mins Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 17 hours The Great Climate Change Swindle
  • 3 hours End of EV Subsidies?
  • 7 hours Price Decline in Chinese Solar Panels
  • 4 hours Maersk's COO statment.
  • 1 day S. Australia showing the way
  • 45 mins Trump accuses Google Of Hiding 'Fair Media' Coverage of him
  • 1 day More OPEC Members May Leave
  • 18 hours China Builds LNG Icebreaker
  • 21 hours Exxon buys green power.
  • 4 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 2 days I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 2 days Qatar Leaving what is the effect on prices
Alt Text

The One Nation Returning To Coal

Despite a global push away…

Alt Text

The Death Of Europe’s Coal Industry

A recent report suggests that…

Alt Text

Gas Shortage Has China Backtracking On Coal Ban

China is backpedaling on major…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Coal And Steel May Have Been Given A Lifeline By China

A big news item the last few weeks has been China’s efforts to curb domestic coal and steel capacity.

That’s been a difficult development for China’s local producers — and their employees. But reports emerging this past week suggest it may also be a major opportunity, for the right projects globally.

Those signals came last Thursday, when China’s central bank posted new guidelines on the coal and steel sectors.

As expected, the bank said it will support tighter lending to China’s domestic coal and steel companies. With the statement saying that commercial banks should stop lending to projects that aren’t part of China’s national planning — and reduce loans to projects that “lack competitiveness”. Related: U.S. To Undermine Russia’s Gas Monopoly In Europe

But the bank also announced another part to this strategy — an effort to move projects overseas.

The central bank said that China’s banking system should provide support for coal and steel companies to move investment outside of China. With the statement specifying this could include export of product as well as projects.

The bank further said it would look at helping Chinese companies manage foreign exchange risks associated with overseas investment.

This is an extremely interesting development — suggesting that Chinese steel and coal companies may now be able to tap funding and support for projects globally. Much the same mechanism that has fed rampant growth in these sectors inside China for the past ten years. Related: The Real Reason Saudi Arabia Killed Doha

If this does come to pass, it would be great news for projects in these sectors, which would become targets for partnerships with Chinese funding partners — or perhaps complete takeovers.

The obvious targets would be coal mines and export terminals — as well as steel mills, and iron ore mines and facilities. Key exporting nations like Australia, Indonesia and South Africa would be obvious destinations for coal investment. With iron ore being a little more far-flung — potentially encompassing Eastern Europe, West Africa, and much of South America.

Watch for more details on this emerging foreign investment plan as well as knock-on deals happening in these strategic spaces.

Here’s to catching the next wave,

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
-->