The government of Shandong, one of China’s major coal-producing provinces, have ordered coal producers to cut prices by 10% for the next three months.
This is the main reason I have been reluctant to invest in Chinese natural resource companies. While I am still very bullish on natural resource companies, I think you’re better off investing in non-Chinese companies.
Gasoline, by the way, is only $2.60 a gallon in China because of price controls.
Related Posts
- China’s coal imports on the rise (12/20/09)
- China power plants running out of coal (05/19/08)
- China lowers price of jet fuel (10/01/08)
- Cleaning up Chinese coal plants (05/02/08)
- China driving coal demand (01/26/10)
