Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

China Risun (中国旭阳) - Quick Post-IPO Trading Update

China Risun (中国旭阳) IPO Quick Note: Past the Peak of Coking Cycle

Sinochem Energy (中化能源) IPO: Behind the PX Curve, Valuation Stretched at USD 10 Bn

Quiddity Advisors

Equity Bottom-Up

Replacing coal-generated electricity with renewable energy to meet future carbon emission targets looks good on paper. Except when consumption surges in tandem with flood-impacted coal mines being shut down. This has resulted in varying degrees of production restrictions amid power curtailment in coke production areas. 
Yesterday coking coal’s most-active January contract on China’s Dalian Commodity Exchange increased by ~6.9% to a contract high of RMB3,428 (US$532.80) per tonne. That's up from ~RMB1,800/tonne in the middle of July.
Coke, the processed form of coking or metallurgical (met) coal, is the key reducing agent of iron ore, the primary steelmaking ingredient.
Dalian iron ore closed 6.5% higher yesterday at RMB797.50/tonne, just below a session-high RMB799.50, the highest level since1st September. 
S&amp;P summarised the provincial warnings by the NDRC, as it relates to power curtailment, as follows:
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/234/669/original/image_846887656201634022040308.png?1634022039" class="editor-image img-responsive" data-smartkarma-image-id="234669"></figure>
 ... where green represents "smooth progress", yellow is a "relatively tough situation" and red presents a "very tough situation."
The coal chemical industry is highly susceptible to upstream and downstream industries. And rising raw materials (coke prices) will likely push steel prices higher.
<a href="https://www.smartkarma.com/entities/china-risun-group-ltd" target="_blank" data-smartkarma-citation="entities:27956:1" rel="noopener">China Risun (1907 HK)</a> operates in the midstream of the coal value chain. This insight takes a look at Risun's recent fortunes and compares it to <a href="https://www.smartkarma.com/entities/henan-jinma-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:26805:1" rel="noopener">Henan Jinma Energy (6885 HK)</a>.

Replacing coal-generated electricity with renewable energy to meet future carbon emission targets looks good on paper. Except when consumption surges in tandem with flood-impacted coal mines being shut down. This has resulted in varying degrees of production restrictions amid power curtailment in coke production areas. 
Yesterday coking coal’s most-active January contract on China’s Dalian Commodity Exchange increased by ~6.9% to a contract high of RMB3,428 (US$532.80) per tonne. That's up from ~RMB1,800/tonne in the middle of July.
Coke, the processed form of coking or metallurgical (met) coal, is the key reducing agent of iron ore, the primary steelmaking ingredient.
Dalian iron ore closed 6.5% higher yesterday at RMB797.50/tonne, just below a session-high RMB799.50, the highest level since1st September. 
S&amp;P summarised the provincial warnings by the NDRC, as it relates to power curtailment, as follows:

 ... where green represents "smooth progress", yellow is a "relatively tough situation" and red presents a "very tough situation."
The coal chemical industry is highly susceptible to upstream and downstream industries. And rising raw materials (coke prices) will likely push steel prices higher.
China Risun (1907 HK) operates in the midstream of the coal value chain. This insight takes a look at Risun's recent fortunes and compares it to Henan Jinma Energy (6885 HK).

China Risun (1907 HK): Even Greater Profits Or A Steel Trap?

China Risun Group

China Risun (1907 HK): Even Greater Profits Or A Steel Trap?