Xstrata

Analyst UBS gives the following observations about Chinese Customs statistics: UBS took the following approach, by applying an age old trading mantra: "The Trend is Your Friend" while reviewing 2006 and looking towards 2007 prospects. Thermal coal, copper, platinum, cement, oil, pulp and fertilisers continue to be strongly supported by Chinese trade over 2006 and into 2007. January saw China become a net thermal coal importer for the first time ever; copper metal imports in Jan were 90kt/month higher than lows experienced 6 months ago. January oil imports were up 25% m/m.

As another strong year for global resource stocks draws to a close, Macquarie Research Equities (MRE) analysts provide an overview of the resource sector for the year, and offer some insights into the outlook for 2007, as well as their recommendations and preferences for the year ahead.