The rebound of bulletproof steel plate is the main reason for the continuous improvement of performance
The rebound in the price of bulletproof steel plate is the main reason for the continuous improvement of performance, while demand is better than expected, and supply is less than expected, which is the main driving force of steel price rise. Judging from the performance of the steel industry in the first half of the year, the demand for bulletproof steel plate keeps stable growth on the whole, better than the market expectation. From the supply side, the national bulletproof steel plate production increased by only 0.8%, steel growth is far from expected. Therefore, the steel market in the first half of the whole is in tight supply balance. At the same time, inventory fluctuations also helped to maintain a high level of steel prices.
The overall decline in the price of raw materials to further consolidate the steel enterprises performance, whether it is iron ore, coke or scrap, the first half of the overall price decline trend was weaker. The main raw material prices led to the lower cost center of steel enterprises, and further consolidate the basis for the good performance of iron and steel enterprises. Iron and steel industry is expected to remain stable in the second half of the year, there is still available for the future. One is the overall stabilization of the macro economy, steel demand will not decline; two steel supply is affected by multiple factors is difficult to quickly release; three is the main raw material and fuel prices weak trend is hard to change, the national cost reduction policy effect will gradually appear. Therefore, we judge the second half of the steel price is expected to continue to maintain at the current level, while the cost is expected to further decline, steel performance is expected to continue to maintain stability.
We believe that in the tight liquidity, low risk appetite in the market environment, the fundamentals should be the most important dimension of attention to the investment outlook, good performance and to determine the growth will be the main driving force in the second half of the stock value. From the industry point of view, steel enterprises reported beautiful results, the latter performance still has a certain sustainability, steel stocks still get relative income. We continue to be optimistic about the development of iron and steel industry, maintain the industry "stronger than big" rating. In terms of individual stocks, it is suggested that more attention should be paid to the leading stocks in the subdivided industries and the bulletproof steel sheet stocks with great elasticity of performance, such as TISCO stainless steel, Fangda special steel and so on. Learn more about the company, please log on to www.sanjiten.com