China Growth Stocks

[Argyll]

Re: The steel market

China is gearing up for a huge renewable energy push. A large part of this is wind turbines, with the towers generally made of steel. And their protectionist policies require a lot of the materials to be made in China.

Although there are going to be problems fitting wind farm electricity into the existing grid structure they are going ahead with vast wind farm plans that dwarf anything else in the world. They are building among others, seven 10,000 MW wind turbine projects.

Here's a few interesting articles:

"China is also expected to boost its long-term wind requirement to 150 gigawatts, up from the current 100 gigawatt target, by 2020, industry sources said. Jenkins said China could provide $44 billion to $66 billion for wind, solar, plug-in hybrid vehicles and other projects. Fan said China also plans to make sure that many of the orders go to its own firms, Gold Wind and Sinovel."

http://www.washingtonpost.com/wp-dyn/content/article/2009/07/15/AR2009071503731_2.html

http://www.chinadaily.com.cn/bizchina/2009-06/30/content_8335789.htm

China also has a need for power lines to connect far-flung wind farms, the towers for these also require steel.

http://www.chinadaily.com.cn/bizchina/2009-07/07/content_8385860.htm