China Armco Metals Inc. (CNAM)

[jd22]

Spudder, The contract to CNAM is for sale of IRON ORE, you are looking at Usimina steel production capacity.

Usiminas is selling iron ore to CNAM and CNAM is distributing it to the chinese steel companies so that they can make their own steel.

Here's the interesting thing going forward, The steel producer that just bought the 150k m.tons will probably need a portion of scrap steel to mix this iron ore with when making the steel. Is CNAM going to supply this scrap?

By Chinese legislation, steel companies must go greener and save energy too, with the appropriate mix of recycle scrap. CNAM announced this completed contract out of the blue. Will they do the same with a large scrap contract? I hope so...

Here is a completely bullish scenario that will help with your antacids. If CNAM can find buyers for the 3 million metric tons that Isiminas wants to supply and a 3-1 mix ratio for iron to scrap is required that would be 1 million metric tons of scrap, CNAM's annual production capacity.

Just something positive for the weekend after a hellish technical week.
jd