Hebei Iron and steel increase next January steel price

Following Baosteel (600019) SH), Wisco shares (600005. SH) announced the increase in steel prices next January, Hebei Iron and Steel (000709.　　SZ) followed. December 23, Hebei Iron and Steel issued December settlement price and January 2011 price policy, of which, threaded steel, wire and other construction steel in December settlement price slightly downward, and all steel varieties of January 2011 order prices have been raised to varying degrees.　　Among them, the plate increases the range is bigger, at 200 yuan/ton. December 14, Baosteel first announced that next January, the main steel prices will increase by 150 yuan per ton to 300 yuan.　　16th, Wisco followed, the introduction of the January 2011 Steel Product Sales price adjustment policy, in addition to the tin price reduction of 300 yuan/ton, other varieties of prices are up 60 yuan-300 yuan. Haitong Futures said that although many steel mills have or are brewing price increases, but the price range is relatively cautious.　　The rise in steel prices is mainly due to raw material price expectations. It is reported that Rio Tinto and Vale have issued to domestic steel mills in the first quarter of next year's iron ore agreement price, the rise of 7.6%. According to the general energy calculation, the Brazilian grade 66% Calagas iron ore price will be about 172 dollars/dry ton, and Rio Tinto 62% grade PB powder ore will exceed 136 dollars/dry ton.　　By then, the cost of iron will likely increase by 100 yuan/ton. Domestic steel mills in the cost of pressure, the profit space is constantly compressed, in a meager profit state.　　According to the China Iron and Steel Industry Association statistics, 1-October 75 large and medium-sized steel companies to achieve profits of 69.34 billion yuan, profit margin of only 2.8%, lower than the average profitability of China's industrial sector. New Lake Futures Analysis (blog area) Division Hong said that the 2010 energy-saving measures to reduce the effect of inventory, for next year steel prices laid a good foundation.　　At the same time, in the cost of upward, domestic demand gradually start the environment, the first half of 2011 steel prices will be staged bull market. 23rd, Shanghai Futures Exchange rebar futures contract RB1105 opened a low, closed at 4774 yuan/ton, down 0.62%.