Steel industry investment strategy: transfer of diamonds and other fields

Abstract The steel industry is difficult to remove, and the de-capacity and cost pricing mechanisms are hard to change. The theme of the investment strategy in 2013 is to wait for the next cycle. Luo Baihui, chief analyst of Jinmo Steel Network, said that he is not optimistic about Pugang and iron ore. , optimistic about the subdivision of diamonds, high-end pipes and special...
The steel industry is difficult to remove, and the de-capacity and cost pricing mechanisms are hard to change. The theme of the investment strategy in 2013 is to wait for the next cycle. Luo Baihui, chief analyst of Jinmo Steel, said that he is not optimistic about Pugang and iron ore. Subdivided diamond, high-end pipe and special steel sub-sectors. From the verification of more than half a year, there is no error in the basic big logic, and the focus of attention in the future is still in the fine-molecular industry.

The industry roe data is more realistic. At present, the industry roe level is at a historical low level, and the future will be at the bottom of history for a long time. The global supply capacity of iron ore has increased year by year, and the supply growth rate has exceeded 10%. However, the single-digit growth in demand growth, the deterioration of supply and demand, the rise in iron ore prices and the decline in the valuation center are major trends. The current price trend of iron ore is already very obvious, and the price of coal also has room for further reduction.

"China's economic transformation is the only way to go. The adjustment of economic structure will inevitably impact the original traditional industries, and at the same time, it will give birth to a huge development space for some new industries." Luo Baihui believes that the future of the metal industry will fall on new materials. In the industry, follow-up will shift the focus of research to new materials.

The theme of 20133: zoom in and focus on the fine-molecule industry such as super-hard materials, high-end pipes and special steel.

1) Special Steel: The future development trend of the industry is determined, performance rebound and policy support are the future catalysts for the industry;

2) High-end pipe: Order-driven, stable growth in the next two years;

3) Diamond: It is closely related to investment in fixed assets. In the future, the expansion of the industrial chain and the change of the investment cycle are now at the bottom of the cycle.

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