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On fundamentals:The final products Iluka's raw materials create include the finer things in life - ceramics/porcelain kitchen and bathroom fitouts, tiles, cooking/dinnerware.The way I see it China and India are well and truly into the infrastructure/housing growth stage, where the raw materials required are steel and energy, hence iron ore and coal going nuts. It's only after you've built the house that you look to deck it out. That's when Iluka is going to have the money really rolling home. Although China's domestic consumption is increasing I don't think we've even begun to see the boom it's going to experience once the overall population gets some serious disposable income.Long term hold IMO, although do agree that growth of price has bubbled a bit too much and expect to see it calm down for a bit, and drop sharply if the market actually acknowledges that growth hasn't yet returned to what seems to be priced in.
On fundamentals:
The final products Iluka's raw materials create include the finer things in life - ceramics/porcelain kitchen and bathroom fitouts, tiles, cooking/dinnerware.
The way I see it China and India are well and truly into the infrastructure/housing growth stage, where the raw materials required are steel and energy, hence iron ore and coal going nuts. It's only after you've built the house that you look to deck it out. That's when Iluka is going to have the money really rolling home. Although China's domestic consumption is increasing I don't think we've even begun to see the boom it's going to experience once the overall population gets some serious disposable income.
Long term hold IMO, although do agree that growth of price has bubbled a bit too much and expect to see it calm down for a bit, and drop sharply if the market actually acknowledges that growth hasn't yet returned to what seems to be priced in.
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