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China must take care not to hurt it's markets! [Copy link] 中文

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Post time 2008-10-20 10:17:26 |Display all floors
This is as good as any time.

In the period between the peak of commodities prices in June!
We do expect demand will taper off as SUPERMARKET shelves in key Europe, USA and British Club - Canada, UK, Australia, New Zealand dries up due to tremendous credit squeeze and banking caution as they wait to see which of their customers are affected by the trends and the huge US$55 trillion derivative instruments losses.

The slowdown in demand has affected cashflow of many manufacturers, reduce demand on commodities.
Commodity producers ought to protect themselve and take production cutbacks as well.

For China, such action by commodity producers will benefit China as well, as much of it's lower end products to end up in shelves of such countries. A drastic lost of prices in commodity producing states, combined with lower demand will reduce their "buying power" and thus China's exports.

Making China dependent on just the lower end markets of the Trade Route, USA, European Union and British Club is crazy!


So, let's cut back production, let the worse come to past in May, before ramping up production to meet demand.
Let not have a commodity crash in prices to unprofitable levels.


cheerios!


Green DRagon
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Post time 2008-10-20 10:19:57 |Display all floors

Malaya has taken the first steps.

Malaya primary commodity minister, Mr. Peter Chin announced that stock of palm oil will be used to produce BIOFUEL.

Further cutbacks by plantation giants, such as non harvesting of 10% of the products would be beneficial.



Green DRagon
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Post time 2008-10-20 10:25:52 |Display all floors

The next 7 years, China GNP would double to US$7 trillion!

The crude oil consumption would rise to possibly 12 - 15 million barrels.

However, China could solve such big increases by maximizing the crude oil imports to produce fuels.
Such as hydrocrackers, gtl, as well as using ctl, biofuel to reduce consumption imports.
This saves forex reserves.

The Amerikan Regime bankers, now targets prices between US$50 to US$125 per barrel.
The lower price level would hurt attempt to build the CRUDE OIL supply that China needs in Angola, Sudan, Persia, Central Asia, Cuba, Venezeula and Brazil.
It also affects Amerikan REgime attempts to drill in the continental shelves, making Arabland more dangerous to all parties.

The Energy Bloc target of between US$70 to US$100 per barrel would be better.
However buying from the Arab territory should be last resort in order to divert from possibility of violence in that region.

Movement of crude oil from Latino, and AFrica will alleviate the dangers to Malaya too in the Straits of Malacca can moved via Panama canal.


cheerios!


Green Dragon
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Post time 2008-10-20 10:27:21 |Display all floors

Expect Energy Bloc to reduce production in the short term.

cheerios!


Green DRagon
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Post time 2008-10-20 10:27:58 |Display all floors
Originally posted by greendragon at 2008-10-20 11:19
Malaya primary commodity minister, Mr. Peter Chin announced that stock of palm oil will be used to produce BIOFUEL.

Further cutbacks by plantation giants, such as non harvesting of 10% of the p ...



Yes, lets try to accelerate the global food crisis. I doesn't matter that almost 1/6 of the world population cannot afford to be fed properly.

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Post time 2008-10-20 10:33:18 |Display all floors

China's demand for commodites will be tremendous in the next 15 years!

Copper, zinc, alumunium, iron ore, rubber, palm oil, timber, crude oil, gas will be tremendous.

Some careful use of technologies will reduce price rise pressures.
This include, for example, copper.....china can use FIBER GLASS to transmit data, use more WIRELESS SYSTEMs.

As for use of Aluminium, Timber, Iron Ore etc. it could invest in capacity built up capacity  production, needed for use in constructions, I expect Malaya to take the lead in more modular construction, meaning more GLASS WINDOWs with anodized aluminiums, more INDUSTRIAL manufactured building blocks, walls, floors and automation, hopefully we can show the way forward in more capital intensive but efficient construction methods. More efficient methods will allow the construction industry to save on labour cost and thus prevent the cost of materials to be a limiting factor.


cheerios!


Green DRagon
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Post time 2008-10-20 10:36:04 |Display all floors

I have seen the construction methods of the new city centre.

It's less labour intensive and quality of construct better.

However more modular construction methods as seen in Japan, USA is needed.
Quality of workmanship will be protected, while fabrication cost very low.


this is the step forward expecially in China's leap into at least 70% urbanization by 2030.


cheerios!


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