A lot of peoples worry of China cheap dumping, but where you can source the cheap supply like 2015-2016. No more such cheap supply and now all expensive.
When you look at those have "cheap" inventory, you can still take advantage of cheap inventory you have and sell at higher price now.
When cheap inventory depleted (depends on individual company), you need to replenish with "expensive" inventory, then margin will drop significantly.
Latest result of SS Steel clearly shows that. When the COGS remain flat, but higher revenue registered, they are using cheap old stock.
Once the old stock depleted, the profit margin should squeezed.
We do not have data of actual inventory in "tonnage". All are showing figures only.
This is something need to be very careful to consider.
Posted by leoting > Feb 14, 2017 04:10 PM | Report Abuse
A lot of peoples worry of China cheap dumping, but where you can source the cheap supply like 2015-2016. No more such cheap supply and now all expensive.
Hi Zeff. What is your view on coming announcement of Prestar's result? Since its raw material is HRC, will its profit dropping due to higher cost for raw material?
You should check in on some of those fields below.
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