Coal Shortages Causing Power Outages in China
Energy and Steel: One Stock for Two Powerful Trends
As the global economy rebounds, steel prices have jumped from $129 per metric ton to a range between $200 and $225 per metric ton. The pace of economic expansion, combined with continued under supply of steel suggests that steel will continue to trade $225 per metric ton and higher in 2011.
In
China, rolling blackouts have been used to slow the country's rising use
of coal as a heating source for homes and businesses. But use of
metallurgical coal for industry is taking off. China is the world’s
leading producer and leading consumer of coal.
Ian Wyatt, investment strategist at Wyatt Investment Research, is recommending one coal stock to take advantage of both long-term trends.
"Coal, for both heating and for steel production, is one of my top recommendations for 2011," says Wyatt. "And one Chinese stock is a leading producer for both sectors. With a forward P/E of just 6, my $18 price target implies a 50% gain for investors."
Click HERE to learn more about this Top Recommendation from Wyatt Investment Research.
