China VTM (0893)

Hi pal,

Answer from them....

Just through one single production process is because of the rich titanium content inside the ore of China VTM.

Visit http://www.chinavtmmining.com/html/bus_procedures.php to know more.....

It's difficult to predict commodity prices.

I prefer to avoid commodity stocks whose sales are tightly correlated to the particular commodity price trend. If that's the case, purchasing the company stocks is worse than just trading the commodity.

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China ‘Golden Years’ Are Gone As Growth Slows, Vale Says

China’s “golden years” are gone as economic growth at the world’s second-biggest economy slows, said an official at Vale SA (VALE5), the top iron-ore producer.

Vale, which shipped about 44 percent of its iron ore and pellets to Chinese steelmakers in the second quarter, expects the country to start to recover by the end of the year, said Roberto Castello Branco, the Rio de Janeiro-based company’s director of investor relations. Vale sees some “early signals” of recovery, which are still “very weak,” he said.

“We are not going to see the spectacular growth rates of 10, 12 percent per year,” Castello Branco said at the Bloomberg Brazil Economic Summit in Rio today. “The golden years are gone.”

Iron-ore prices dropped to the lowest since Dec. 2009 yesterday on slower growth in China, the biggest user of the steelmaking ingredient, and a weaker outlook for the global economy. Vale said on July 25 that second-quarter profit plummeted 59 percent, missing analysts’ estimates for the fourth time in the past five quarters, after prices for minerals and metals declined... [To read full article from Bloomberg]

You are correct, but you have to understand the unique situation in sichuan where iron ore supply are not imported but mine by the chinese mine as it is not cost effective to transport iron ore there......

The iron ore price you are referring are imported iorn ore price if I am right....although generally iron ore price is soft now........which affect most of the coastal cities but not in the western centre region

(15-08-2012, 09:44 AM)dzwm87 Wrote: It's difficult to predict commodity prices.

I prefer to avoid commodity stocks whose sales are tightly correlated to the particular commodity price trend. If that's the case, purchasing the company stocks is worse than just trading the commodity.

===
China ‘Golden Years’ Are Gone As Growth Slows, Vale Says

China’s “golden years” are gone as economic growth at the world’s second-biggest economy slows, said an official at Vale SA (VALE5), the top iron-ore producer.

Vale, which shipped about 44 percent of its iron ore and pellets to Chinese steelmakers in the second quarter, expects the country to start to recover by the end of the year, said Roberto Castello Branco, the Rio de Janeiro-based company’s director of investor relations. Vale sees some “early signals” of recovery, which are still “very weak,” he said.

“We are not going to see the spectacular growth rates of 10, 12 percent per year,” Castello Branco said at the Bloomberg Brazil Economic Summit in Rio today. “The golden years are gone.”

Iron-ore prices dropped to the lowest since Dec. 2009 yesterday on slower growth in China, the biggest user of the steelmaking ingredient, and a weaker outlook for the global economy. Vale said on July 25 that second-quarter profit plummeted 59 percent, missing analysts’ estimates for the fourth time in the past five quarters, after prices for minerals and metals declined... [To read full article from Bloomberg]

CHINAVTM MINING (00893.HK) resumed trading this morning and announced it received a proposed privatization plan from its controlling shareholder Trisonic International, which holds 48.5% stake in the company. The minimum offer price is expected to be $1.72, representing 8.18% premium to last closing price.

Details here . . http://iis.aastocks.com/20121105/001532455-0.PDF[i]

Don't think can get acceptance if major shareholder intend to offer only 1.72. Looks like info must have leaked causing them to suspend trading before ready to make announcement but price already ran up to 1.59. Templeton has been avg down from their original 5% stake to 9% holding at an avg price of 1.55 in the last 12 mths but their original 5% stake is bought at a much higher price I believe. I will also not accept.

With iron ore price recovering and new infrastructure projects in china, iron ore price should improve further.......

The new leader change should help with more policies helping china growth......

IPO at more than $3 with 133mt of iron ore.....now with more than 400++mt and reaching 600mt, I don't see the reason why investors should accept an offer of $1.72.....

I think this stock is a gem....I will not accept the offer even if the offer is $2 unless the situation changes.......

(06-11-2012, 01:20 PM)Swinger Wrote: CHINAVTM MINING (00893.HK) resumed trading this morning and announced it received a proposed privatization plan from its controlling shareholder Trisonic International, which holds 48.5% stake in the company. The minimum offer price is expected to be $1.72, representing 8.18% premium to last closing price.

Details here . . http://iis.aastocks.com/20121105/001532455-0.PDF[i]

Don't think can get acceptance if major shareholder intend to offer only 1.72. Looks like info must have leaked causing them to suspend trading before ready to make announcement but price already ran up to 1.59. Templeton has been avg down from their original 5% stake to 9% holding at an avg price of 1.55 in the last 12 mths but their original 5% stake is bought at a much higher price I believe. I will also not accept.

The major shareholder is smart to try to buy over the remaining stake at HK$1.72....

Iron ore price should be rising now and china vtm is a very well managed company...


China oil, iron ore import growth quickens; copper slumps



November 11, 2012
RECORDER REPORT
0 Comments




China's copper import growth slowed sharply to hit a 17-month low in October, but iron ore and crude oil quickened pace in a sign that domestic demand for those two raw materials was stabilising after months of slowdown. Other economic data released also gave early indications that the world's second-largest economy may have ended its near two-year slowdown, with October exports, industrial production, investment and retail sales growth all quickening.

The pace of recovery will, however, be patchy for commodities. Those tied to the infrastructure sector, such as iron ore and coking coal, are set to see the quickest turnaround. Demand recovery for base metals, more closely linked to industrial use, could be milder. --- Crude oil imports rise at 3rd highest pace this year

The world's top copper consumer shipped in 321,879 tonnes in October, customs data showed on Saturday, the lowest volume in 15 months and the first annual drop since August 2011. The decline of 16 percent year on year was the steepest since May 2011 and could mark the start of several months of weak imports as domestic demand remained lukewarm, analysts said.

"Consumption for spot copper cathode has not improved in October from September," Zhang Ao, analyst at Minmetals Futures said before the data was released. Inventories at Shanghai's bonded warehouses, the country's largest, have risen 14 percent from late September to about 800,000 tonnes - indicating shipments in the previous months were not consumed.

Bulging port stocks and poor demand have caused Chinese spot copper prices to fall 5.3 percent since the start of October to 56,050 yuan ($9,000) a tonne this week. Aluminium imports, however, jumped 68 percent from year ago to 101,174 tonnes, largely due to a favourable price arbitrage. Soyabean imports from China, the world's top buyer, were up 5.8 percent from year ago at 4.03 million tonnes. But they dropped 19 percent from September partly due to lower supplies in South America, where drought hit crops early this year.

Imports of iron ore from the world's top steel consumer fell 13 percent from a month ago to a one-year low of 56.43 million tonnes in October. Separately, crude oil imports from the world's second-largest consumer in October rose 13.8 percent from a year earlier to about 5.58 million barrels per day, the third-highest this year. Implied oil demand also grew 6.5 percent in October from a year earlier, close to September's record high as demand was underpinned by fuel inventory building and new production capacity.



Copyright Reuters, 2012

Today up more than 5%.

I think the offer price of HK$1.72 is too low.

Those that brought since ipo at more than HK$3 will not be willing to sell.....see how things turn out from here.

Chart looks impressive today.

Steel price and iron ore price are dropping again after surging from low......

This industry is quite volatile....

China vtm now try to privatize at HK$1.72 and while I believe the price is low, it really depend on the demand in china for steel and iron ore.....

I see values in this stock....and I believe thisis why the management want to privatise it.

But upside is capped at HK$1.72 unless the offer is raised or not proceed with delist.....

Price should be around current and it is bearish in short term......

Offer increased to HK$1.93......

Think the company should worth more, not sure if funds or BB willing to sell their shares or not.....current price is HK$1.81-1.83...still can earn a bit......

Hoping the offer price will increase but that depend on the funds and majority shareholders....

(15-12-2012, 09:29 AM)cliffordng888 Wrote: I see values in this stock....and I believe thisis why the management want to privatise it.

But upside is capped at HK$1.72 unless the offer is raised or not proceed with delist.....

Price should be around current and it is bearish in short term......