"Steel plate" fundamentals to warm future still promising

Source: Internet
Author: User
Keywords Fundamentals steel plate iron ore resources
Every reporter Li Wenyi steel Plate Index This week rose 7.98%, and the market this week rose to 4.59%, the steel plate index to outperform 3.39%, this is the first time this year. However, from the beginning of the year, the overall increase in steel plate still lag behind the market.  BOC International believes that this week's rebound in steel stocks is not a short-term theme of speculation, but the fundamentals have changed, the future is still worth looking forward to. The Changjiang Securities release Industry report said that the steel prices that rebounded in the two quarter peak season had not been exceptional this year, indicating that seasonal factors still had a significant impact on the industry's demand, although steel prices did not show up until the end of April due to weak overall demand, which was late in the normal years.  While yields are rebounding faster, social inventories have been struggling to fall, indicating that demand may not be strong, but it is also exceeding expectations. Bank of China International steel industry researcher Xu Lemin said, this round of iron and steel stocks rebound in several major stimulus factors are: The industry's overall PB (city net rate, share price and net assets ratio) value is low; the trend behind the market, there are opportunities for improvement; steel prices continue to rise, the fundamentals have changed. Among them, the real estate industry recovery drive the steel industry fundamental improvement, is the main reason of the recent plate performance eye-catching. "I personally think that inflation expectations, the resumption of real estate in the downstream, the steel industry has support."  "Xu Lemin said.  However, Sun Yong, a research fellow at the Galactic Securities and steel industry, does not think that he is still bearish on the steel industry in the second half. Sun Yong said that the wave of iron and steel stock market is a trading opportunity brought about by the iron ore negotiations, not the fundamentals of the good. With the continuous deepening of the iron ore negotiations, the price of resources pricing power is increasingly fierce, as the Australian miners and the Japanese steel companies to reach a 35% reduction in the first agreement, iron ore further reduce the difficulty of increasing, so for the domestic iron ore resources of steel enterprises, is a positive. "In the past, iron ore agreement prices are usually lower than the spot price of imports and domestic iron ore prices, so domestic iron ore has a price increase conditions." "Sun Yong said. Sun Yong to the steel industry "cautious recommendation" attitude, but optimistic about the iron ore resources of small and medium-sized steel listed companies, such as wine and steel hongxing, Ling Steel shares, Army Day steel and so on. Xu Lemin said that in the industry's optimistic background, in addition to iron ore resources of small and medium-sized steel Enterprises, industry leader Baosteel shares, Wisco shares can also be concerned about.
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