Cost increases Baosteel's March steel price increase

February 15, Baosteel shares (600019) officially issued the March Steel price policy, the main varieties of the overall increase of 200 to 300 yuan/ton.　　Among them, the hot-rolled 300 yuan/ton, the general cold appliances board up to 260 yuan/ton, car board up 300 yuan/ton, thick plate up to 300 yuan/ton. Industry analysts generally believe that the steel price increase in Baosteel after the year did not surprise, since the third quarter of last year, domestic steel prices mainly driven by costs. At present, the main steel varieties have been up to 5000 yuan/ton pass, according to the current price trend of iron ore, coking coal, the cost of short-term still cannot be alleviated.　　However, the current steel industry is facing the fundamentals and share prices "double bottom" pattern, with the market rebound, steel plate or there is a certain rebound valuation repair opportunities. Cost Promotion Steel Price February 14 years after the official opening of the first day, Wisco shares (600005) up the main varieties of 200-400 yuan/ton.　　Among them, wire 200-330 yuan/ton, hot rolling 200-400 yuan/ton, cold-rolled 100-300 yuan/ton, galvanized 200-350 yuan/ton. Since last December, the domestic steel prices continued to rise, the early rise behind the construction of steel varieties of the plate performance eye-catching, the price rose significantly.　　According to my steel network statistics, as of February 14, the National 25 major cities 20mmhrb335 rebar average price of 4972 yuan/ton, the National 23 major market 20mm plate average price of 5065 yuan/ton. Industry analysts believe that the current increase in steel prices is mainly due to the lifting of the cost of steel prices at the bottom.　　In addition, the expected March peak season, as well as overseas steel prices during the Spring festival during the rise and other factors, steel mills and the market homeopathy price. During the Spring Festival, the prices of iron ore and other raw materials continue to rise, in the spring, such as a series of projects such as affordable housing into the start of the peak, steel demand will be significantly increased, the demand for steel replenishment is also a significant increase, which further promote steel prices continue to rise, and continue to create In addition, as of February 8, the U.S. market and the Nordic market, the price of steel varieties after a full rebound last month, continued to rise throughout the month.　　The United States hot-rolled, galvanized plate and plate in the monthly price increase of more than 10%, the Nordic steel price increases are also generally around 8%. Plate valuation bottomed out according to the securities data, the steel plate is in the oversold region from the valuation point of view.　　At present the steel plate PB is about 1.55 times times, with all A shares of 2.95 times times PB ratio of around 0.53, relative valuation in all sectors of the lower level, compared to all A shares of the historical valuation is also low.　　In addition, Daye Special Steel (000708), emerging casting pipe (000778), Army Day Steel (600581), Baosteel shares and other dynamic p/e are around 10-12 times, of which Baosteel shares static P/E 10 times times. 2010, the entire steel plate due to overcapacity and high cost of the negative factors, performance of almost all sectors of the mostIn the two cities, 10 of the largest bear shares occupy 4 seats.　　Changjiang Securities and steel industry analyst Liu Yuanrui said, although still maintain the industry's "neutral" rating, but the current steel industry is facing the fundamentals and share prices "double bottom" pattern, the fundamentals of the bottom of the rebound is basically clear, short-term industry to achieve a small excess income is worth looking forward to. However, Everbright Securities steel industry analyst Hu Hao Special note, according to the reported performance of listed companies in the four-quarter results, the industry's profit chain increased but the growth trend slowed. In terms of performance expectations, the opportunity for the entire steel industry is a phased rebound rather than a reversal.