Steel will also rise in price

The global steel industry turmoil, a few days ago, steel prices have appeared universal pattern, industry researchers said that domestic steel prices are brewing a wave of rising market, which will have a positive impact on the performance of listed companies in the steel category in the first quarter, the performance of steel stocks in the short term is worth paying attention to. It is reported that the recent global steel boss ArcelorMittal announced the U.S. hot-rolled coil prices by $ 35 / ton, the European steel mills will also be hot-rolled coil ex-factory price increased by 9 euros / ton, to 516 euros / ton. At the same time, the steel mergers and acquisitions about the international market is also surging, to a certain extent, to promote the rise in steel prices. For the second quarter of the steel industry after the trend, the market is still in a certain divergence. March steel third round of negotiations to start, iron ore prices will have a large increase, which has become the performance of iron and steel companies to grow a greater uncertainty. Zhou Tao believes that, after the negotiations, the new iron ore prices will be implemented from April, if the iron ore prices rose 40% -50%, most steel companies can afford, and the second quarter is considered a peak season for steel consumption, is expected to iron and steel companies in the second quarter of the performance problem. And Everbright Securities of Zhao Xiang'e said that although the short-term steel prices may rise sharply, but in the long term, production capacity is still excess, overall, the steel industry downturn is more likely, especially in March iron ore negotiations, the uncertainty is greater. The steel industry is in a boom cycle. Benefiting from the renewal cycle of steel products in developed countries and the industrialization process in developing countries, the steel industry will enter a golden growth period of 10~15 years. Elimination of backwardness, mergers and acquisitions and internationalization have put China's iron and steel industry in an extraordinarily long boom cycle, and steel prices are expected to continue to rise by more than 10% in 2008, which will not only absorb the rising costs of iron ore and coal, but also boost the industry's profitability. The value of heavy assets is waiting to be revalued. Tons of steel investment and replacement cost of steel enterprises continue to rise, coupled with industrial policy restrictions on new steel production capacity, improve the hidden value of existing steel enterprise assets.