![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Wednesday, July 27, 2005 9:36:45 AM
Wed Jul 27, 2005 8:11 AM BST
LONDON (Reuters) - Investors in mining stocks should focus on firms that supply raw materials in which China is in short supply and avoid firms in areas where it has surplus domestic capacity, Merrill Lynch Investment Managers said.
"Our investment strategy concentrates on those companies that supply the raw materials in which China is not self sufficient. This includes bulk commodities such as iron ore, coking coal and thermal coal, as well as copper, nickel, zinc and alumina," MLIM gold and mining analyst Catherine May wrote in a research note on Tuesday.
She said MLIM's World Mining Trust fund was at an all-time high on the back of its major holdings including CVRD (10.6 percent), Rio Tinto (8.8 percent), BHP Billiton (7.0 percent), Falconbridge (5.6 percent) Teck Cominco (4.5 percent) and Alumina (4.2 percent).
"These are some of the few companies that are not only benefiting from high metal prices, but also have near-term expansion opportunities that will allow them to take advantage of the high price environment going forward," May said.
She said one of the particular fears in commodities markets is that China is producing too much steel after moving from being a net importer in 2004 to a net exporter in 2005 and with domestic production increasing by 33 percent year-on-year.
"There is great confusion in the market about whether the overcapacity in steel is a good or bad thing for the mining sector," May added.
"To us it seems clear: China is short of the raw materials required to produce this steel and having to import commodities such as iron ore and coking coal to supply the hungry steel furnaces."
© Reuters 2005. All Rights Reserved.
http://today.reuters.co.uk/Funds/FundsArticle.aspx?type=fundsNews&storyID=2005-07-27T071024Z_01_...
Recent FE News
- FirstEnergy Corp. Declares Common Stock Dividend of $0.425 Per Share • PR Newswire (US) • 07/24/2024 05:20:00 PM
- Smart Grid Enhancements Underway on Electric System in York and Adams Counties • PR Newswire (US) • 07/22/2024 05:05:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/22/2024 01:00:48 PM
- FirstEnergy and International Soap Box Derby Race into the Future with Title Sponsorship Renewal • PR Newswire (US) • 07/19/2024 06:03:00 PM
- FirstEnergy Receives Remaining Proceeds in Strategic $3.5 Billion FirstEnergy Transmission, LLC 30% Interest Sale • PR Newswire (US) • 07/17/2024 06:30:00 PM
- FirstEnergy Receives Industry Award for Winter Storm Outage Restoration Efforts • PR Newswire (US) • 07/11/2024 05:15:00 PM
- JCP&L Upgrading Morristown Substation to Reduce Power Outages • PR Newswire (US) • 07/02/2024 04:56:00 PM
- Penelec Storm Drill Focuses on Efficient Power Restoration to Customers Following Severe Weather • PR Newswire (US) • 07/02/2024 03:30:00 PM
- FirstEnergy to Webcast Second Quarter Earnings Teleconference • PR Newswire (US) • 07/01/2024 04:50:00 PM
- Mon Power and Potomac Edison Complete Inspections and Maintenance to Help Reduce Outages for West Virginia Customers This Summer • PR Newswire (US) • 06/26/2024 06:52:00 PM
- Potomac Edison Completes Inspections and Maintenance to Help Reduce Outages for Maryland Customers This Summer • PR Newswire (US) • 06/26/2024 06:44:00 PM
- Newsweek Names FirstEnergy as One of America's Greatest Workplaces in 2024 • PR Newswire (US) • 06/26/2024 01:15:00 PM
- FirstEnergy's Ohio Electric Companies Complete Proactive Work to Help Enhance Service Reliability for Customers Through Summer Season • PR Newswire (US) • 06/25/2024 01:51:00 PM
- Inspection and Maintenance Work Nears Completion in Met-Ed's Service Area to Enhance Service Reliability for Customers Through Summer • PR Newswire (US) • 06/24/2024 08:20:00 PM
- Inspection and Maintenance Work Nears Completion to Enhance Service Reliability in West Penn Power's Service Area for Customers Through Summer • PR Newswire (US) • 06/24/2024 08:20:00 PM
- Inspection and Maintenance Work Nears Completion to Enhance Service Reliability in Penelec's Service Area for Customers Through Summer Season • PR Newswire (US) • 06/24/2024 08:20:00 PM
- Inspection and Maintenance Work Nears Completion to Enhance Service Reliability in Penn Power's Service Area for Customers Through Summer Season • PR Newswire (US) • 06/24/2024 08:20:00 PM
- JCP&L Completes Inspections and Maintenance to Prepare Electric Grid for Summer Heat, Storms & Hurricanes • PR Newswire (US) • 06/24/2024 07:30:00 PM
- FirstEnergy Electric Companies Prepared to Handle Early Summer Heat Wave • PR Newswire (US) • 06/14/2024 08:30:00 PM
- New Jersey Customers Encouraged to Apply for Payment Assistance Programs During Utility Assistance Awareness Week • PR Newswire (US) • 06/11/2024 08:48:00 PM
- FirstEnergy Names Nikhil Rao Associate General Counsel, Litigation and Labor & Employment • PR Newswire (US) • 06/11/2024 03:30:00 PM
- FirstEnergy Names Stephen Avila Vice President, Customer Care • PR Newswire (US) • 06/11/2024 03:30:00 PM
- Storm Drill Helps Mon Power Employees Prepare for Severe Weather Events • PR Newswire (US) • 06/10/2024 02:27:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/05/2024 08:32:14 PM
- Annual Storm Restoration Drill Helps Electric Company Employees Prepare for Severe Weather Events • PR Newswire (US) • 06/05/2024 03:53:00 PM
Greenlite Ventures Completes Agreement with No Limit Technology • GRNL • Jul 19, 2024 10:00 AM
VAYK Expects Revenue from First Airbnb Property Starting from August • VAYK • Jul 18, 2024 9:00 AM
North Bay Resources Acquires Mt. Vernon Gold Mine, Sierra County, California, with Assays up to 4.8 oz. Au per Ton • NBRI • Jul 18, 2024 9:00 AM
Nightfood Holdings Signs Letter of Intent for All-Stock Acquisition of CarryOutSupplies.com • NGTF • Jul 17, 2024 1:00 PM
Kona Gold Beverages Reaches Out to Largest Debt Holder for Debt Purchase Negotiation • KGKG • Jul 17, 2024 9:00 AM
Avant Technologies Welcomes Back Former CEO with Eye Toward Future Growth and Expansion • AVAI • Jul 17, 2024 8:00 AM