Steel industry: Steel Price rally slowing international market relative stability

Weekly news: Domestic steel Price: This week, the price of carbon steel continue to uplink, the earlier increase in the smaller cold-rolled plate and plate price increases, respectively, 1.6%, 1%, hot-rolled and long materials only up about 0.4%, individual markets such as Shanghai hot-rolled in the first half week after the fall. Futures, threaded steel, wire main contract closing price rose 0.4%, 0.2% respectively last week. The price of the orientation silicon steel in Wisco is unchanged, and the price of imported silicon steel is stable for 7 consecutive weeks. Non-oriented silicon steel rose 3.1%.　　According to the Mysteel survey, that the market sideways, the majority of varieties more optimistic rebar. International steel Price: In the international market, in addition to South Korea by the price of steel down the benchmark steel prices and lower, the United States, Japan, relatively stable market, the European market prices have not small increase. Germany's hot-rolled and cold-rolled prices rose 9%, 8.1% respectively, rebar price rose 5%.　　LME billet futures price closed at 350 USD/ton, and last week flat. Raw materials: This week, ore prices split, Tangshan mine fell 1.4%, India's mine price continued to rise 1.5%. West Australia, Brazil to Beilun port freight rose 9.5% respectively, 10.9%, the BDI index also rose 9.5%, so the sea freight has hit a rebound since the new highs. The prices of raw materials such as coke and scrap have remained stable in Shanghai, but the price of Coke in the steel-intensive Hebei region rose by an average of about 30 yuan/ton. High chromium, nickel prices slightly callback, down 1.6%, 1.2% respectively. Topcj.com Inventory: This week, social inventories continue to decline, the national inventory down 3.2%, of which the long material, plate down 5.1%, 1.6% respectively. Compared with the same period last year, hot-rolled, medium-plate inventory pressure, higher than 39%, 32% respectively, screw steel, wire only 4%, 7%, in view of the increase in inventory capacity, long inventory has been in a reasonable range.　　Port iron ore stocks were 70.44 million tonnes this week, up 1.54% from last week and only 4.48 million tonnes from the highest point last September. Share price and valuation: Domestic steel stocks have performed better, although they fell 0.5% per cent from the previous week, but stronger than the Shanghai and Shenzhen 300 index 1.4%. The international steel stocks are also doing well, with 6 of the 10 international steel stocks tracked by the rally, the main result was a 25-year low in U.S. steel inventories at the end of April, prompting hopes for a bottoming rebound in U.S. steel prices, which led to a rally, but with less than 50% per cent of its capacity and downstream demand still weak,　　Whether or not to touch the bottom. News preview: CISA insisted that the Australian mine should drop 45% Brazilian mine down 40%; SHA Steel Group into the St Zhang copper Week reviews: According to the Steel Association statistics, the first four months of this year 72 large and medium-sized steel enterprises overall loss of 5.179 billion yuan, (the same period 63.401 billion), the chain March loss 1.92 billion improved.　　Steel mills have raised ex-factory prices this month and orders have improved, the industry is expected May earnings will improve the chain, but the entire first half of the year may be a whole industry losses. In terms of earnings, 2009 steel industry earnings will be in weekThe bottom of the term, difficult to have a profit-driven obvious investment opportunities. From steel prices, because of the obvious excess capacity, 09 domestic steel prices will fluctuate around the cost line, investment opportunities in the steel price rebound in the phased performance. From the point of order, inventory and downstream demand, construction steel price trend will be better than the plate, real estate demand in the future start can make long material price rise more sustainable. In the short term, after a clear rebound in the past, the loss of steel companies have been significantly repaired, domestic steel prices or will enter the oscillation adjustment period, but will be supported by the cost line of steel enterprises.