1. This week, steel prices stabilized, rebar prices fell 10 yuan / ton, hot-rolled, cold-rolled prices were basically flat, medium-board prices fell 50-60 yuan / ton.
2. Raw material prices were flat this week.
3. Inventory continued to drop slightly this week.
4. Taking into account the raw material inventory around the site and the estimated gross profit using the spot mine, this week continued to be low and volatile.
5. As the downstream demand of the steel industry is not optimistic, and we expect the third quarter (especially July and August) of the steel industry will be a substantial loss, creating a low point of this quarter's earnings, we believe that steel prices may stabilize in September, and With the reduction in the cost of raw materials used, the industry's earnings may improve, but the elasticity of profitability improvement is insufficient, and it may not be sustainable under the trend of low downstream demand. Maintain the industry's “Synchronous Market-A†investment rating. . We believe that some of the stocks with good texture and low valuation have investment value. We recommend Yulong, Baotou Steel, Xinxing Ductile Iron Pipe and Fangda Special Steel.
Risk Warning: The phenomenon of no booming season reappears, leading to continuous bottoming out of industry profits, and the performance of listed companies continues to decline.
2. Raw material prices were flat this week.
3. Inventory continued to drop slightly this week.
4. Taking into account the raw material inventory around the site and the estimated gross profit using the spot mine, this week continued to be low and volatile.
5. As the downstream demand of the steel industry is not optimistic, and we expect the third quarter (especially July and August) of the steel industry will be a substantial loss, creating a low point of this quarter's earnings, we believe that steel prices may stabilize in September, and With the reduction in the cost of raw materials used, the industry's earnings may improve, but the elasticity of profitability improvement is insufficient, and it may not be sustainable under the trend of low downstream demand. Maintain the industry's “Synchronous Market-A†investment rating. . We believe that some of the stocks with good texture and low valuation have investment value. We recommend Yulong, Baotou Steel, Xinxing Ductile Iron Pipe and Fangda Special Steel.
Risk Warning: The phenomenon of no booming season reappears, leading to continuous bottoming out of industry profits, and the performance of listed companies continues to decline.
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Gabion,Welded Wire Mesh Co., Ltd. , http://www.nsweldedwire.com