Fourteenth Severstal Enterprise Resource Strategy Seminar, 20 more than the steel business representatives that the steel industry into a high-cost era, due to rises of raw materials, especially iron ore prices artificially high, so The profits of iron and steel enterprises is getting smaller and smaller, and some have been faced with the edge of the loss.
It is reported that the participants agreed that, to give full play to the role of the Severstal cartel, rational procurement of bulk raw materials, to maintain a certain inventory levels, to avoid centralized procurement, the inhibition of the momentum of price increases together to safeguard common interests. Also asked the members of the unit to strengthen the exchange of information, the establishment of an information notification system.
CITIC Securities analyst Zhou also believes that the steel industry has bid farewell to the low-cost era, by cost and demand factors driving the price of steel has been to sustain gains. The Hsi-by iron ore prices next year is expected to rise to 15% -20%, coke prices will keep rising. At the same time, demand for steel remains strong downstream industries such as the rapid development of the real estate industry will steel demand stimulation.
The Hsi-by analysis listed company with iron ore resources in the rising costs will have an advantage, the adjustment of the third quarter, steel stocks investors worry too much about the rising cost of steel enterprises. He is quite optimistic about the listed companies have a strong cost transfer ability, including product pricing and in the regional monopoly companies.