keep2. Ore price plunge last 1-2 month. Less cost for mycron. keep at least until nxt quater. Can also keep 5 years as china is on long term steel manufacture consolidation policy as well as restriction by local authorities on steel dumping.
Hi all sifu, anyone can share whether mycron steel products are more for property building material use or more for other constructions works like road, rails ( MRT) projects
Sineo, if said Mycron production can use for building material or MRT project, answer is yes.
Mycron is producing 70% Coll-Rolled Coil(higher quality), mainly use for Oil & Gas/Palm Oil/Automotive. further Coil convert to Cold Roll sheets use for coating/HDG products. The demand is keep increasing especially Oil & Gas Sector.
Old time, when oil price on > USD100, most Oil company use Stainless steel for infra structure, however when Oil drop mostly swap their applicant to coating /HDG products, or use FRP as cheaper material. Therefore demand is increasing.
The shut down of Megasteel factory not much affect Mycron business, as there are totally different business model.
Another product consist 30% is pipe tune which has better profit margin.
buy call..... if you all have follow global steel price movement, u will know crc steel price go up a lot past few week!!! so now time to buy....... target price rm1
21st July, 2017 11:32 AM by Will Adams FastMarkets
Base metals prices on the London Metal Exchange are up by an average of 0.5% this morning, Friday July 21. Tin is bucking the trend with prices off 0.1% at $20,090 per tonne, while the rest have gains of between 0.4% for aluminium and 0.7% for zinc, with three-month copper prices up 0.6% at $6,009 per tonne. Copper seems to be grinding away at overhead supply.
Volume has been average with 6,334 lots traded as of 07:22 BST.
This comes after a day of consolidation on Thursday when copper, lead and tin closed slightly higher, aluminium and zinc closed off around 0.3% and nickel dropped 1.5% to $9,510 per tonne.
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leelc99
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Posted by leelc99 > 2017-06-14 10:21 | Report Abuse
Other steel stocks down, Mycron up. And vice versa. Facepalm