• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 3 hours Could oil demand collapse rapidly? Yup, sure could.
  • 11 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 8 hours Are EVs Safer Than Combustion Engine Vehicles?
  • 5 hours What If Canada Had Wind and Not Oilsands?
  • 7 hours WE Solutions plans to print cars
  • 7 hours Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
  • 7 hours Oil prices going down
  • 12 hours Nopec Sherman act legislation
  • 11 hours Sell out now or hold on?
  • 14 hours The Irrelevance Of BTU Rating - Big Oil's Gimmick To Hoodwink The Public
  • 16 hours China & India in talks to form anti-OPEC
  • 18 hours Sabotage at Tesla
  • 14 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 13 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 6 hours Oil and Trade War
  • 6 hours Australia mulls LNG import
Alt Text

The (Only) Culprit Of Coal’s Demise

Cheap and abundant natural gas…

Alt Text

Could China Save The U.S. Coal Industry?

In a somewhat surprising move,…

Alt Text

U.S. Coal Finds Footing In European Markets

The struggling U.S. coal industry…

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

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:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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