Wuhan Steel sheet products see increase of 12% in the second half growth in machinery manufacturing
It is reported that the mainland's third-largest steelmaker, Wuhan Iron and Steel, the products of its August price increase of about 12%. Analysts pointed out that the upward trend in steel prices can be maintained, but not like last year, rose, also pointed out that the short term for the automotive, machine plate price increases should be higher than the price of long steel used in construction.
According to Hong Kong media reports, Bloomberg quoted the Wuhan Iron and Steel Company Secretary Wan Yi, said the company cold-rolled coil prices up 480 yuan per ton (RMB. The same below), while the hot-rolled coil prices up 240 yuan per ton. Which is equivalent to an increase of about 12% cold-rolled steel, while the hot-rolled steel increased by about 6.9%.
Analysts see that growth in the second half of machine
Everbright Securities analyst Feng key Rong pointed out that the increase of the Wuhan Iron and Steel sheet products, car sales in the first half due to the performance of the mainland is quite strong, household products, machinery and other downstream consumption has stabilized, to stimulate demand on the sheet. The impact of warming by the real estate for the construction of long steel in the bottom the first to rebound in April, The plate is only slightly later stabilized, so far only the formation of an upward trend. However, he refers to the rate of increase is still slightly more than expected. He believes that the mainland car sales in the first half more policy support, in the second half trends are more elusive, but the growth machine until the second half, "pinpointing" the demand on the support plate.
Hong Kong-listed steel companies can certainly benefit from rising steel prices, which Maanshan Iron & Steel (0323), nearly 50% of long steel products, Anshan Iron and Steel (0347), and almost 90% of sheet products. Rong Feng key that sheet in the short term price increases could be material than long. He noted that with the improvement of downstream consumption, the current upward trend in steel prices have been determined, but do not think like last year's general, steel prices keep rising, consumers of no bargaining power.
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