Ductile iron pipe market recovery when we can come

2013-11-07


According to our observation, ductile iron pipe manufacturers annually in recent years showed a certain change in the law: the law one after the Spring Festival will be a wave of rising steel prices, but the time difference magnitude larger, which is dominated by demand after the holiday the expected improvement due; rule two, the annual rate of rise in the size of the market after the holiday next year presents a similar phenomenon, as the size of the year; rule three, fell in the pre-holiday market, the New Year is often a turning point, after the holiday hikes. 
The stock market before the Spring Festival in 2013 and 2006 during the Spring Festival has a lot of similarities, are experiencing a decline since the market since last year. But thus conclude that ductile iron pipe factory price rose sharply out in 2006 as the stock market is still too early, demand remains lackluster first apparent, the supply side, although the data in mid-January decline in steel production, but production fell in the pre-emergence is also very easy to understand, the focus is years after production. You also need to worry about is the pressure on stocks. On the whole, we believe that steel prices still high probability event, but the increase is not optimistic, the entire industry is still in a difficult recovering.

Investment Strategy: This week CITIC iron ductile cast iron pipe factory index fell 1.08 percent, outperforming the broader market could not be seen on the industry market recovery is still cautious. Stocks, Chang Po shares, long-established special materials, such as steel Gaona results in line with expectations steel stocks among the biggest gainers, you can still continue to pay attention. Ordinary steel, the majority of results will be lower than expected, and even some substantial loss, it is recommended in the fundamentals thoroughly before it gets better still wait and see.