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  • wheelbarrowme wheelbarrowme Nov 13, 2010 10:28 PM Flag

    Coal and Oil season is here

    Hey massa my friend, I think you are thinking wrong. In China, the government thinks opposite to us. When high demand seasons arrive in China, the demand for coal goes up and that's when the Chinese gov. slaps on coal price controls so industrial plants and consumers don't have higher costs. This holds down wages and prices for exports. Read this website:

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    • The article is in July 2010, 4 months ago. Do you have something more update?

      • 1 Reply to coo2002coo99
      • Do your own research for a recent article.

        The Uguhr article originated inside western China and was the initial signal of price controls being discussed by the Chinese government. Growing inflation in China is a major trend now, so price fixing will become more likely as time goes on. When coal price fixing happens, it will be sudden, not gradual. That will hurt LLEN. One thing you have to understand about China is that individuals and companies serve the government, not the other way around. That's what makes investing in China, not like investing in the U.S. which is market force driven policy.

    • It's hard to figure this out. On one hand the gov't could limit the price of coal but then as the article says that would only increase demand which would be good for coal companies. Forcing small mines out of business makes for good opportunities for LLEN. The way I see it is this, China uses a huge amount of coal and will continue to use a huge amount of coal because it is cheap. Wind, solar, nat gas, and oil are too expensive. LLEN's mines are in China so they have to be more profitable than companies that export to China. I would imagine that these large mines are negotiating coal pricing with the Chinese gov't before buying up these smaller mines. That's probably why these acquisitions are taking time.

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