Category: Money tips Release Date: 2006-05-17
I share by the end of 2006 pairs of Tin conducted in-depth research and a successful referral. The current stock price has been close to reaching my target price. Based on the company's promising growth prospects and maintain the rating. Target price raised.
Brief
The world's tin market gaps, tin prices bullish optimism: in 2006 the world's tin output by 35 million tons, compared with the demand, there are tons of gaps in 6000-6500. Besides China, the world's major tin producing countries are Indonesia and Peru. China's tin resources are the best, followed by Indonesia, and his resource conditions and the Chinese is similar to statistics in 2001, when the reserves are 100-150 million tonnes. However, Indonesia's tin indiscriminate dig up the land in recent years, the phenomenon is very serious. Peru's mining and Indonesia than there are differences. Peru's production process we use Ausmelt furnace, other enterprises are reverberatory furnace. Reverberatory furnace high energy consumption, pollution is serious.
Now the world's tin output to further increase the number of constraints, it is impossible to form a great supply. Indonesia's main tin-producing island to state house, now the Government has taken a lot of local control measures, 37 enterprises were closed down, allowing only six smelter started. Out of tin is decreased significantly.
In 2007 the world's tin production is expected to grow 10-12%, 12-14% tin consumption growth. Tinplate, glass, solder industry is growing very fast, will drive the rapid growth in tin consumption. Plastic stabilizer present in Europe, the U.S. consumer more than 10% annual growth, while the tin is an important stabilizer of plastic additives. Tin in the ceramics glaze, solder, tin, glass and other areas of application, can not find alternatives. For example, in solder, if the alternative to use other metals, physical and chemical properties not reach, and the use of other metals costs will be higher. We therefore optimistic about the bullish price of tin.
Future competition is the competition for resources, have the resources, they have a future: In the past three years, 04-06 years, the company found in tin, copper, lead metal consumption is greater than that year. In 2007 the company will continue to increase geological exploration and mining efforts.
In 2003, the old district of local government began to integrate the private mining. Mine Remediation mode is known as the old models and YTC experience consolidation at the national meeting on mining promotion.
Chenzhou in Hunan, the production base is also increasing its efforts to conduct mine construction. Very supportive of local government.
The company's resources to maintain a substantial increase in reserves. However, the utilization of own resources is not high, about 40%.
Taking into account resource conservation, and sustainable development, for its own use of resources adopted a progressive strategy. Therefore, the company's bullish optimism of resources.
In 2007 there will be changes in product mix, focusing on the development of tin metal and tin chemicals: The company will not fall below 2006 production levels in 2005. Materials is expected in 2006 tin production 1 million tons, of which tin-lead solder and tin powder increase is relatively large; tin chemicals 8,000 tons, of which 1,600 tonnes of methyl tin, an increase of one-fold. Butyl tin production in August 2006, when production is limited, 07 years to more than 1,000 tons. Butyltin After a month's trial production, one-time output of qualified products.
Market development is being done now, mainly sold abroad, has been orders.
In 2007 there will be some growth in total output. Will continue to adjust product mix, focusing on the development of chemical tin timber and tin, in particular, to speed up the development of chemical tin. We expect the 2007 increase will be greater than tin chemical production growth in 2006.
Maintains the rating: I have in stock by the end of 2006 pairs of Tin conducted in-depth research and a successful referral. The current stock price has been close to reaching my target price. Based on the company's promising growth prospects and maintain the rating. Target price raised to 13 yuan.
