Investment Strategy Iron And Steel Industry In 2010: Supply And Demand To Ease The Upturn

The cyclical nature of steel industry shun fullywill show a trend of steady uplift.
reflected in the global field of vision. Production, theChina's steel industry in mixed operating environment.
world's steady growth, the Chinese release of theIron ore was first proposed in the pricing of the
most obvious; demand, steel demand growth center"China model", efforts to increase iron ore
in India, Europe and the United States in 2010 on anegotiations on the right to speak, to reduce steel
modest rebound in demand; steel prices, the globalprices cost pressures; trade protectionism hinder
initial stabilized, China has now slightly higher; steelChina's steel exports, deterioration of the domestic
enterprises profitable on the significant improvementsupply and demand relationships; the Government is
in Asian countries, Europe and the United States is stillraising export tax rebate rate, eliminate backward
difficult.production capacity greater efforts to a certain
China's steel demand and supply amount ofextent, improve the domestic steel industry
difference will be narrowed gradually resolve theoperating environment.
contradictions. 2010 production capacity utilization rateChina's steel prices in the third quarter profitability
will be maintained at 80-90% level; forecasts in 2010improved significantly, and the steel is better than S
crude steel output or an increase of 3%; iron and& P steel, long products than flat materials,
steel demand in the real estate, infrastructure,sub-species point of view, we continue to be
automotive industry, stimulated by the three leadingoptimistic in 2010 steel and long products.
full-year 2010 growth of 8.3%, so contradiction2010 year for the steel industry will be in high
between supply and demand will be resolved.tolerance, the current PB values of iron and steel
Factors determine the upper and lower steel pricesindustry, 2.0 below the historical average of 2.1, more
will show a trend of steady uplift. Iron ore pricesreasonable, and based on steel prices rebound has
regain upward, coke, steel scrap, pig iron prices willemerged, the industry recovery around the corner,
push up steel prices stabilizing, steel futures alsothus bringing shares rose more determined We
showed significant bullish expectations; but the lowertherefore optimistic about the performance of the
the price of finished products to suppress thesteel industry next year, to give "strong in the big
formation of steel prices rising, so we expect steelcity," investment rating.
prices does not appear twists and turns, as a whole