Baosteel raises prices for steel stocks

Baosteel Co., Ltd. adjusted yesterday the sales price of carbon steel sheet in January 2013. Excluding the price of hot-dip galvanized and electro-galvanized steel, the price of steel galvanized steel sheet is generally increased by 50 to 150 yuan/ton. Analysts generally believe that the price adjustment is basically in line with market expectations. In November, Baosteel also raised the ex-factory price of some products. China United Steel Analyst Hu Yanping said in an interview with this reporter that “in anticipation”, “At present, the sheet metal market is relatively strong, and under the backdrop of stable operation of the major downstream industries, Baosteel’s price policy has risen steadily and moderately, and it is also reasonable. Its plate policy in 2013 ushered in a good start."

The price of Baosteel plate has increased slightly for two consecutive months. The cumulative increase of each type is between 50 and 300 yuan/ton. The increase in the order price is due to the rebound of the overall steel market in early September. Even if some varieties are adjusted in November, the adjustment rate of sheet metal is extremely limited, and the overall room for growth remains.

However, there are also strong brokers who are bullish on the steel sector. China Merchants Securities (600999, stocks) believes that low steel prices and low-cost regions are the best time to buy steel stocks. In general, in the low season of the steel industry, the performance is low, and steel prices and costs are low. At this time, the valuation of steel stocks is the cheapest. As demand picks up or supply falls, steel prices will rise back to lead costs and open up the profitability of the industry. This is the best time to buy steel stocks.