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Iron Steel

Maanshan Iron & Steel Railway Construction Opportunities To Improve The Performance Of Every Month

Yesterday morning, the annual shareholders meeting held shares in Maanshan Iron & Steel, Maanshan Steel shares, said in his speech, Chairman Gu Jianguo, this is a difficult year for the steel industry and affect the performance of iron and steel enterprises are more uncertainties. However, Su-Kam, general manager of Maanshan Steel shares, said the company relatively wide product variety, long and sheet of the proportion of total production were 46% and 51%, whether long or sheet material price increases, companies will benefit, Over the past 4 months and 5 months, the company's operating performance to improve month by month.

It is reported that domestic steel production to 5 million tons, about 100 million tons of excess capacity, excess capacity will be affected Market Prices. In addition, large changes in export markets, although in exports in 2008 Q4, but my whole year or a net exporter of steel, in April 2009 data show that iron and steel in China a net importer of the month. Household appliances, machinery, steel products, exports of downstream business disruption and reduce the steel consumption, has to a certain extent, an increase of domestic products competitive, the role of export tax rebate policy has to be seen.

Addition to these two factors, Gu Jianguo that raw materials and fuel price volatility also to the operating results of steel companies this year, creating uncertainty, China's negotiations with international mining giants are ongoing iron ore imports this year Stone's price cut on the profit impact of large steel enterprises, in addition to coal prices are higher, the corporate cost control stressful.

For many investors concerned about a major railway construction brought to the Maanshan Iron & Steel Developing Opportunity issues, Su Kam said steel is mainly embodied in three aspects, first, Maanshan Iron & Steel Wire Rebar can participate in the relevant Tender Tender; followed by reform of the H shaped steel rail electrification demand for products such as, for example, with China Railway Materials Corporation, Maanshan Iron & Steel entered into before the purchase and sale of 110 tons of steel contract; Finally, the train wheels, although there are four production wheel, MA Steel monopoly in the area of the wheel was broken, but the Ministry of Railways signed an agreement with Maanshan Iron & Steel, Maanshan Iron & Steel R & D support for high-speed wheel, the next 2-3 years, high-speed wheel all import situation will be broken.

Su-Kam Steel said the company's current production of all the blast furnace in end of last year when the company stock 4.3 million tons of ore at high prices, and now the company's ore stocks at 300 million tons of ore at high prices have all been used up, the current stock price of ores close to the current market price. Finished goods inventory from the company last year, has maintained a relatively low level, about 8-10 million tons, equivalent to 2-3 days of production.

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