Chinese Economics Thread

[KYli]

Winter is the best time to do this. Summer is typically requiring more electricity in China due to air conditioners. Every year China would restrict coal import in the winter to help domestic coal mines. Or else the price of coal would collapse. Due to unexpected shut down during the pandemic early days, stringent safety inspection due to increase in mining accidents last year, and the strong rebound of the Chinese economy, coal demands have increased unexpectedly this year.

However, the safety inspection is ending soon. Removing the restriction of importing coal from Russia, Indonesia, and Mongolia should help allevating the price of coal soon.

 

[hashtagpls]

Australia's leaders are now playing a dangerous game by mooting a FTA with Taiwan.
When that happens, australia may as well become the cuba of the Asia-pacific, and not the cool sort of cuba with salsa and mojitos and che Guevara freedom fighters and doctors, but the shitty rhodesia of the pacific white supremacist pariah state.

 

[Hendrik_2000]

View attachment 66529

Winter time bad time to do this tbh.
View attachment 66530

Maybe China should transition to more natural gas in in the next 10 years?

View attachment 66531

China at the lowest coal imports (excluding march) since great recession.

China is definitely converting to natural gas But it is easier said than done Since China domestic gas production cannot meet demand they have to import from central Asia in the west and From russia mening they have to built the gas line from central asia and Russia for the northen part of the country . And for the southern part they have to import the LNG and built the necessary infrastructure like regassification plant for the east coast

After that they still built the trunk line criss crossing China from north to sout east to west and in between They already built the gas line from russia and CE and they built the trunkline north south. Recently the middle section is finish up to Tianjin and Beijing area. It take a long time to built the infrastructure for trunk gas line and feeder line to the cities

 

[Tam]

China is definitely converting to natural gas But it is easier said than done Since China domestic gas production cannot meet demand they have to import from central Asia in the west and From russia mening they have to built the gas line from central asia and Russia for the northen part of the country . And for the southern part they have to import the LNG and built the necessary infrastructure like regassification plant for the east coast

After that they still built the trunk line criss crossing China from north to sout east to west and in between They already built the gas line from russia and CE and they built the trunkline north south. Recently the middle section is finish up to Tianjin and Beijing area. It take a long time to built the infrastructure for trunk gas line and feeder line to the cities

Yamal LNG project won't need a gas line. This is way up in the Arctic and a gas line may prove to be too long. Instead, Russia is building a fleet of special LNG carriers with ice breaking capability, with this large fleet being made in China, S. Korea and Russia under the SovComFlot enterprise. More of these ships are also being built for other liners such as COSCO and Japan's MOL. The ships are meant to go through the North East passage, which is the Bering Straits to the Arctic. The long term strategic implications of this would lead to a growing strength of Russia's Pacific Fleet and China's northern fleets to keep these lanes open. I made some posts about this on the Chinese Shipbuilding thread.

 

[KYli]

Sichuan and Chongqing shale gas boom is possible within the next decade. Sichuan basin contains world biggest shale gas reserve. With the advancement of technology, I think gas should play a vital role in China energy mix especially since gas is much less polluted.

 

[Tyler]

This is true. But it is all relative. You can not possibly compare the "Chinese slums" to those of India, Africa and Brazil. It is world's apart in more ways than one.

China does not have Indian style slums. Those in China are just like so-called "inner cities" in the US. They are just lower income areas within the city.

 

[Tyler]

Counterproductive I still think, should do the luxury goods and tourism first.

There's money guiding every one of these decisions.


When the hell can we get Chinese to stop buying Western perfume and handbags n shit. Despite all the jingoism and travel restrictions, someone I know still brought back all these Louis Vuitton n cosmetics n shit.

High quality perfume and handbags can be easily designed and produced. China should really further develop their own luxury brand names. If you think about it, making high quality perfumes and handbags should be much easier than making WS-10 engines and J-20 planes.

 

[bajingan]

Brazil iron ore mines are not in a good shape to ramp up its production in the near future. The dam disaster in Jan, 2019 came at the worst time. It would take a few years for Brazil to get back running. African iron mines are very high quality but infrastructure, logistic, and corruption make it difficult to bring these iron mines online in Africa and would take at least a decade to do so.

I remember a member here said that China does not produce enough iron ore due to lower concentration which make extraction cost sky high.
He also said that China iron ore mines require over $90 MT to be profitable but both Australia and Brazil only needs $20 MT to cover the extraction cost.
However there is indication that australia has started to manipulate iron ore prices which is now skyhigh, if the price keep going up i just wonder if it cheaper to just use domestic iron ores?

 

[LCR34]

I remember a member here said that China does not produce enough iron ore due to lower concentration, every 1 million ton of 65% concentration would require 3 million ton of domestic iron ore mix which make extraction cost sky high.
He also said that China iron ore mines require over $90 MT to be profitable but both Australia and Brazil only needs $20 MT to cover the extraction cost.
However there is indication that australia has started to manipulate iron ore prices which is now skyhigh, if the price keep going up i just wonder if it cheaper to just use domestic iron ores?

There are voices calling for ramping up iron recycling within China, smelting used/recycled metals beats extracting iron from ore i guess.

 

[KYli]

I remember a member here said that China does not produce enough iron ore due to lower concentration, every 1 million ton of 65% concentration would require 3 million ton of domestic iron ore mix which make extraction cost sky high.
He also said that China iron ore mines require over $90 MT to be profitable but both Australia and Brazil only needs $20 MT to cover the extraction cost.
However there is indication that australia has started to manipulate iron ore prices which is now skyhigh, if the price keep going up i just wonder if it cheaper to just use domestic iron ores?

I think I am the one who said this. Anything above $100 MT makes domestic iron ore production profitable and competitive. China iron ore output has started to increase but it would take time to ramp up production. China also has lift ban on importing scrap metals to alleviate the demands due to the recovery.

Compare with Japan, which uses 32% scrap metals of feedstock consumed by steel mills, China uses only 20% scrap metals. If iron ore price stays high long enough, steel mills would increase the use of scrap metals. Steel mills don't have much incentive to use scrap metals if iron ore price is cheap. The Chinese government needs to expand the recycle of scrap metals collection to make China less reliance on iron ore import.