Brazil's Commodity Market & China's Demand

China’s enormous pent up demand for commodities has positioned Brazil for growth and capitalistic exuberance. The Brazilian mining companies have partnered with China to provide Metal Ore which is required for China’s steel making firms. China is the world’s largest steel maker and their needs unsurpassed anything the Global marketplace has experienced in the past.

 In fact, Eike Batista Brazil’s wealthiest billionaire and on Forbes wealthiest list has a long term plan for expansion and partnership with China and other emerging marketplaces. He is building a new port in RIO to allow super transport ships to carry significantly more freight which reduces cost and improves efficiencies. China is the primary partner which will allow Brazil to ship commodities such as Metal Ore, Oil and Agricultural products to the emerging markets. Hence, Brazil and China provide jobs and a consumer middle class which will fuel demands for services and goods for these countries and others such as India. Many predict Batista will become one of the richest in the world in the next 5 to 10 years with a net worth of $100 Billion. As the old saying goes follow the money. Batista also has recently invested in Gold mines and oil exploration.

Wall Street Grand research opinions have been ahead of the curve and projected the increased demand for commodity based firms. Several of the companies that we profile meet this opportunity. We expect that the pent up demand coupled with governments in Brazil and China that partner with businesses to invest and gain market share leadership will grow substantially. Mining companies stand to benefit from China’s demand as they build massive infrastructure projects.